Solana (SOL) Price Reaches Highest Ever Weekly Close — Could Outperform Bitcoin
Can Solana Reach New Highs Against Bitcoin? | Credit: Derek Fenech
Key Takeaways
- Solana (SOL) reached its highest-ever weekly close last week.
- Solana trades in a consolidation pattern against Bitcoin.
- Will SOL break out and reach a new all-time high against BTC?
The SOL price has been one of the best-performing large-cap cryptocurrencies in the current market cycle. After an over 3,000% increase since the December 2022 lows, the SOL price reached a new all-time high on Nov. 22.
Despite this impressive increase, the Solana price has not yet reached a new all-time high against Bitcoin. Let’s look at the SOL/BTC chart and see if a new all-time high will happen this cycle, as well as the target if yes.
Solana’s Weekly Close
The weekly time frame chart shows that SOL had increased rapidly since September, when it bounced at the support trend line of a long-term triangle. Then, in November, SOL broke out from its resistance trend line and increased even faster.
Solana’s increase led to a new all-time high price of $264 on November 24. While SOL has fallen slightly since it reached the highest-ever weekly close at $253. The long-term wave count gives a target between $300 and $420 for the top of the SOL increase.
There is more confluence toward the higher end of the target since it aligns with the 1.61 length of wave one (white) and 1.61 external retracement of the previous drop (black).
Technical indicators also provide a positive outlook for future trends. The weekly Relative Strength Index (RSI) is increasing and crossed 70. The Moving Average Convergence/Divergence (MACD) made a bullish cross and is above 0.
So, while the SOL price will continue to appreciate against USD, whether it will do so against Bitcoin (BTC) is another matter.
Solana vs Bitcoin
While the SOL/USD chart shows a breakout from a symmetrical triangle, Solana Bitcoin does not. Rather, the price has been trading in the same symmetrical triangle since March. The wave count suggests the triangle is part of a lengthy wave four that follows an extended wave three. The sub-wave count is in black.
Since wave four is nearing its end, an eventual breakout is expected, confirming the start of the fifth and final wave.
Technical indicators also support the ongoing upward movement. The RSI and MACD have generated hidden bullish divergences (green), a sign of trend continuation. Since the symmetrical triangle is a neutral pattern that often leads to trend continuation, it makes a breakout even more likely.
The first target for the top of wave five is at ₿0.0058, created by giving waves five and one the same length (white). This would be a new all-time high price.
New Highs Against Bitcoin
The Solana price reached a new all-time high against USD last week and could do the same against Bitcoin.
A breakout from the long-term pattern will likely take the price to the final horizontal resistance area at ₿0.0039 and eventually lead to a new all-time high.
Solana (SOL) Price Reaches Yearly High — All-Time High Within Reach
