SOL Blasts To New All Time High, What’s Behind The Rally? for BINANCE:SOLUSDT by CoinGape

-SOL has risen over 250% the last month
-Price has been supported by the 15 MA
-A bearish divergence may put this rally at risk

Solana has been one of the strongest coins in the top 100 over the past month. Prices have surged off the July 20th low of $22 to nearly $95 in only a months time. This rally was sparked by BTC & ETH breaking out of their multi month trend lines . Many have been wondering what’s behind this explosive run on SOL as the majority of coins have still yet to break over their previous all time highs. Just over the last week, a digital asset fund announced it would be offering a registered Solana fund to institutional investors. Just a day later, data feeder Pyth Network announced that it is going live on Solana’s proof-of-stake blockchain. Both of these announcements surely helped SOL blast towards a new ATH .

Ever since SOL swept its low of $22, bulls have relentlessly pushed price on an unstoppable bull trend. After SOL hit a new ATH a week ago, price retraced in a bullish flag manner and quickly broke to the upside. Since then, price has blasted through each resistance level & is printing new all time highs at the time of writing. Based on Fibonacci extension levels, SOL may be heading towards the $100 mark. If price gets rejected at this level, we should expect a pullback to the previous resistance of $88. Throughout the last 10 days, SOL has formed a potential rising wedge formation. A break of either trend line will send price parabolically in that direction.

Over the last 35 days, price has been supported by the 15 MA. This MA has held SOL up each time a retrace occurred. Based on this, we can use the 15MA as a gauge of whether SOL is bullish or not. Breaking below this MA will land SOL back to the $60/$70 region. At the time of writing, we can see SOL has minor support at $88 & $77. These two marks should hold SOL in the event of a fierce rejection. Anything below these values will likely land SOL back to its previous high around $60. 

While looking at the Stochastic RSI , we can see it has retraced into bearish territory despite price continuing on to make new highs. This is considered a bearish divergence & would generally foreshadow a larger pullback for SOL to occur. For this to be negated, strength must break above the 50 value. The regular RSI has also printed a bearish divergence as strength made a lower high as price made a higher high. Breaking below the 70 value will likely put an end to this rally.

SOL Intraday Analysis

Spot rate: $95.00

Trend: Bullish

Volatility: High

Support: $88.00

Resistance: $100.00

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