Solana’s SOL/BTC pair is going strong — is it hitting new highs?

Solana (SOL) loyalists believe the blockchain is the Ethereum killer. The comparison will therefore be made after Ethereum (ETH) fell to a three-and-a-half-year low against Bitcoin (BTC), which was last seen in 2021. The central question is whether Solana will stand its ground on Bitcoin or lose. A land similar to ether.

Analysts are divided about what’s next for Solana. Some expect the price to decline, while others think a breakout could be possible. In a September 20

VanEck is also optimistic about Solana. In a September 25 report, the company predicted that Solana would reach $330, soaring to 50% of Ethereum’s current market capitalization. However, the report added that institutional investors have been slow to recognize Solana’s strengths. This is probably due to the hesitation to switch from blue chip coins like Ethereum.

Solana will also need to find new competition to push itself as the best alternative layer 1 network to Ethereum. Sui Network could become a rival to Solana, according to K33 Research analysts.

Will Solana stand its ground on Bitcoin or plummet like Ethereum? Let’s find out by analyzing the SOL/BTC chart.

SOL/BTC Weekly Price Analysis

The pair formed a symmetrical triangle that generally behaved in a continuous pattern. Since the price rose before the triangle was formed, the possibility of a breakout is still high.

However, the flat 20-week exponential moving average (0.0023 BTC) and the relative strength index (RSI) near the midpoint do not provide a clear advantage to either bulls or bears.

If the bulls hold the price above the 20-week EMA, the SOL/BTC pair could attempt a breakout above the resistance line. If successful, the pair could begin the next phase of the rise to 0.0031 BTC, after which it could move towards the pattern target of 0.0039 BTC.

This positive view is invalidated in the short term if the price declines and falls below the triangle. This can sync the pair to 0.0018 BTC and later to 0.0013 BTC.

relevant: As long as social sentiment gets too heated, the chances of Bitcoin rising are low.

SOL/BTC daily price analysis

Inside a triangle, price typically oscillates between support and resistance levels. It broke out of support on September 18th and then rose above the moving average on September 26th.

Buyers will try to drive the price up to resistance where sellers are likely to intervene. If the price breaks below the resistance line but bounces from the 20-day EMA (0.0023 BTC), it has the potential to move above the triangle. increases.

On the other hand, if the price declines and falls below the moving average, it suggests that the pair may extend its stay inside the triangle. The trend will favor bears breaking below the support line.

It is difficult to predict the direction of the breakout with certainty. Therefore, it is better to wait for a breakout to occur before placing a big bet.