As the rest of the cryptocurrency market slowly becomes optimistic about a recovery, altcoins may also reach that mark.
Solana
Solana’s price is rising, and by the looks of it, so are the chances of the altcoin gaining new users’ attention. This is because SOL is currently recovering from a negative risk-reward to a positive risk-reward.
The Sharpe ratio moving into positive territory above the zero line suggests that Solana appears to be an attractive investment. Given the strong reputation that altcoins have in the market, this could attract board investors and first-time investors from other assets.
Secondly, the broader market cues are also turning bullish. This is also evidenced by the relative strength index (RSI), which continues to remain in bullish territory above the neutral line, marked at 50.0.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI values range from 0 to 100, with levels above 70 indicating overbought conditions and levels below 30 indicating oversold conditions.
Since the altcoin is far from overbought, SOL has plenty of room to observe further growth.
SOL Price Prediction
At the time of writing, Solana is trading at $154 and is in the process of breaking out of its ascending triangle pattern. An ascending triangle is a bullish continuation pattern formed by a horizontal resistance line and an ascending support line. A potential breakout above the resistance level signals a continuation of the uptrend.
The same is true for Solana as the altcoin is above the $153 resistance level. According to the pattern, the altcoin’s potential target is $191. This is nearly 25% higher than the trading price.
This rally is possible if SOL can flip the $169 resistance level into support.
However, if Solana fails to maintain the $153 support and breaks below, it could test the $137 support level. Losing it could invalidate the bullish outcome, leading to a deeper retracement.
