Analyst: Solana (SOL) Showing Similar Trend To 2021

Solana (SOL) Showing Similar Trend to 2021, Analyst Predicts Bullish Breakout

Analyst Ali Martinez has recently pointed out that Solana (SOL) is currently following a pattern that is reminiscent of its bullish breakout in 2021. In a post on X, Martinez shared a chart highlighting the similarities between the current trajectory of SOL and its price movement in July 2021.

The chart shows that the Solana 3-day price is mirroring the same pattern as it did in 2021, with the Relative Strength Index (RSI) at a similar level. The RSI is an indicator used in technical analysis to measure the speed and magnitude of price changes in an asset. A value above 70 indicates overvaluation, while a value below 30 suggests oversold conditions.

Currently, Solana’s RSI is around 40, indicating that the asset may be slightly undervalued. In 2021, a similar RSI level led to a significant bullish breakout for the cryptocurrency. This similarity has led Martinez to predict another potential surge for Solana.

In other news, a large SOL whale recently made a significant move on the blockchain by transferring 287,019 SOL (over $40.3 million) to the exchange Binance. This move coincided with a price dip for SOL, suggesting that the whale may have anticipated the drop or played a role in it.

SOL Price and Recovery

As of now, Solana is trading around $141, down more than 8% over the past week. Despite the recent dip, the price of SOL has already started to recover from the drawdown.

It remains to be seen whether Solana will follow the same bullish breakout pattern as in 2021 or chart a new course entirely. With the cryptocurrency market constantly evolving, investors will be closely watching SOL’s price movements in the coming days.

For more updates on Solana and other cryptocurrencies, stay tuned to our platform for the latest news and analysis.