Date: Mon, Oct 28, 2024, 11:52 AM GMT
As we enter the final week of October, the cryptocurrency market has shown signs of a bullish surge, with Bitcoin (BTC) climbing 2.40% in the last 24 hours and trading above $68,600. Riding along with Bitcoin’s momentum, Solana (SOL) has also experienced a notable rise, up 1.59% today and over 6% over the last week.
Solana (SOL) Marks Highest Netflow
Before diving into technical things, let’s examine Solana’s recent on-chain activity. According to data from Artemis, Solana has become the top chain in terms of Netflow in the past 24 hour, recording a positive inflow of $11.9 million. This is based on total inflows of $21.6 million and outflows of $9.7 million. In contrast, Ethereum (ETH), Solana’s main competitor, saw a large NetFlow decrease of -$29.6 million. These figures suggest growing interest and liquidity movement into the Solana network.
Cup and Handle Pattern: A Bullish Signal
The recent price spike in Solana can be attributed to a technical pattern known as the Cup and Handle, which SOL is forming in sync with Bitcoin’s chart. The pattern, often seen as a precursor to a bullish breakout, is characterized by a rounded “cup” shape followed by a consolidation phase, or “handle,” which can signify an imminent upward move.
Crypto analyst @HexaTrades shared their analysis of this pattern, pointing out its similarity in both Bitcoin and Solana’s charts. This alignment suggests that SOL could be preparing for a bullish breakout alongside Bitcoin.
Technical Analysis of Solana (SOL) and Bitcoin (BTC)
- Cup and Handle Pattern: Both Bitcoin and Solana have formed this classic pattern, indicating that an upward breakout could be on the horizon. This pattern is historically bullish and tends to lead to a continuation of the uptrend once the handle breaks out.
- Potential Breakout Levels: For Solana, the next significant resistance level lies around the $800 mark. If the handle breakout is confirmed, this could be a medium-term target for SOL. For Bitcoin, breaking out of the handle could lead to a move toward the psychological $100,000 mark.
Will Solana Fly with Bitcoin?
The formation of the Cup and Handle pattern in both Solana and Bitcoin charts signals that these assets might be preparing for a major breakout. As Solana rides Bitcoin’s bullish wave, it is well-positioned to benefit from the increased interest and liquidity flowing into the cryptocurrency market. If the breakout materializes, Solana could be set for a significant rally in the coming weeks.
This setup suggests that Bitcoin’s momentum might carry over to other strong performers in the market, including Solana. Investors should watch for a confirmed breakout above the handle formation to validate this bullish outlook.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.