Solana has been one of the best-performing assets in the crypto 10 top by market pairing Ethereum’s wins during the weekend. The cryptocurrency has persevered some of its past week’s gains but records some hurdles over the past 24 hours.
Solana trades at $44.5. There have been 1% losses and 10% profits over the last 7 days. This time frame, Ethereum (13% profit) and Dogecoin (33% profits), both have better performances.
Despite the short-term downside price action, crypto analyst Justin Bennett believes SOL’s price is on track to register a massive increase. This big move to the upside could play out over the course of the coming months and push Solana’s price into a 40% move to the upside.
Bennett claims that SOL’s triangle-shaped pattern has been evident over the last few months. The price of Solana has been moving to the upper side of this triangle which should operate as critical resistance north of SOL’s current levels.
As the analyst states, the higher side of the triangular pattern can be traced back 2021, when SOL hit its record high. The price of Solana started to decline and the cryptocurrency saw support at that point. However, SOL trended lower than it. This caused a significant collapse.
The price has been trying to move above the triangle, which may lead to more appreciation. Bennett stated the following on why SOL’s price and the entire crypto market are at a crucial point:
The thing with a pattern like this is that isn’t inherently bullish or bearish. Yes, we are in a larger downtrend so you have to pay attention to that but ultimately we are waiting for the market to breakout here, to make up its mind on weather it wants to move higher or lower (…). We are currently in wait-and-see mode with Solana.
Solana in Low Timeframes: What Can Cause More Losses Over The Next Days?
The analyst claims that $40 is going to be a critical level for SOL’s price. This price level is necessary because the cryptocurrency has witnessed high volumes of trading, which makes it essential to have to protect against further losses.
If the SOL’s price is pushed downwards, $32 and $27 should operate as additional support levels. Market participants will get more clues about SOL’s price potential rally or re-test of these support levels if Solana closes a daily candle above or below $40. This indicates bullishness while the latter suggests more losses.
The U.S. dollar strengthening could pose some challenges for crypto markets in the short-term. Bennett said that the negative currency trend in late July allowed risk-on assets some relief, but it appears to have tried to return to the top end of an important trendline.
It $DXYIt is trying to recover the channel that it lost on October 10.
This is a bad sign. #crypto. pic.twitter.com/kxVmS6NhPY
— Justin Bennett (@JustinBennettFX) August 15, 2022