An
analyst
has
explained
how
Solana
(SOL)
is
currently
mirroring
the
same
pattern
that
led
to
a
bullish
breakout
for
its
price
back
in
2021.

Solana
Appears
To
Be
Showing
Similar
Trend
To
2021
Right
Now

In
a
new

post
on
X,
analyst
Ali
Martinez
has
discussed
about
how
the
pattern
recently
forming
in
SOL
has
been
reminiscent
of
what
the
cryptocurrency
showed
back
in
the
July
of
three
years
ago.

 

Related
Reading

Below
is
the
chart
shared
by
the
analyst,
that
highlights
the
similarity
between
the
two
periods:

As
is
visible
in
the
graph,
the
Solana
3-day
price
has
so
far
shown
a
trajectory
that
has
been
similar
to
the
one
in
2021.
Not
only
that,
the
current

Relative
Strength
Index
(RSI)
is
also
at
around
the
same
level
as
the
one
back
then.

The
RSI
refers
to
an
indicator
in
technical
analysis
(TA)
that
basically
measures
the
speed
as
well
as
the
magnitude
of
the
recent
changes
occurring
in
SOL’s
price.
This
momentum
indicator
is
generally
used
for
determining
whether
the
asset’s
price
is
fair
or
not.

When
the
indicator
has
a
value
greater
than
70,
it’s
a
potential
sign
that
the
cryptocurrency
is
becoming
overvalued
as
its
price
is
growing
too
quickly.
As
such,
corrections
can
become
more
likely
in
this
region.

On
the
other
hand,
the
metric
being
under
30
implies
a
possible
oversold
condition
is
forming
in
the
asset,
meaning
that
a
bottom
could
be
probable
to
form
in
its
price.

 

From
the
chart,
it’s
visible
that
the
RSI
is
at
around
40
for
Solana
currently,
suggesting
that
the
asset
is
slightly
leaning
towards
being
undervalued.
Interestingly,
back
in
2021,
this
same
RSI
level
led
to
a
big
bullish
breakout
for
the
cryptocurrency.

Given
that
the
coin’s
price
has
shown
a
similar
trajectory
as
back
then,
and
its
RSI
has
also
been
pretty
much
the
same,
it’s
possible
that
another
surge
might
start
for
Solana
from
here.
It
now
remains
to
be
seen
if
past
pattern
will
repeat
for
the
asset
or
if
it
will
follow
a
new
path
entirely.

Related
Reading

In
some
other
news,
a
SOL

whale
made
a
massive
move
on
the
blockchain
just
a
couple
of
days
ago,
according
to
data
from
the
cryptocurrency
transaction
tracker
service

Whale
Alert.

The
move,
which
involved
the
transfer
of
287,019
SOL
(equivalent
to
over
$40.3
million
at
the
time
the
transaction
was
executed),
travelled
from
an
unknown
wallet,
likely
to
be
the
whale’s
personal
address,
to
an
exchange:

 

Binance.

Thus,
given
the
direction,
it’s
possible
that
this
humongous
holder
had
made
the
deposit
for
selling
purposes.
Soon
after
the
move
had
come,
the
asset’s
price
had
seen
a
dip
towards
the
$128
mark,
suggesting
that
the
whale
had
played
a
role
or
had
at
least
anticipated
the
drop.
Whatever
the
case
be,
though,
Solana
has
already
made
recovery
from
the
drawdown.

SOL
Price

At
the
time
of
writing,
Solana
is
trading
around
$141,
down
more
than
8%
over
the
past
week.

Featured
image
from
Shutterstock.com,
whale-alert.io,
charts
from
TradingView.com

Go to Source
Author: Keshav Verma

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