Solana demonstrates what it’s like to see a fantastic uptrending chart. The market’s price action is seen with an uptrend observed in mid-February 2021 and after a solid consolidation between March and August 2021. In August, we can see a lot of price movement with a little consolidation, forming a cup and handle pattern.
During this time, the price skyrocketed from the lows of $20 to as high as $80. The handle pattern shows some resistance between the $60 and $80 price range. Following that, the chart suddenly takes off, reaching spectacular highs of around $200. This type of price action is typically seen in high-growth stocks.
During the months of August and September, we saw good price volume action. Two strategies can be used in this type of market behavior. The first is to wait until the price reaches the 50-day moving average before taking a position. The price of Solana is expected to touch the moving average and then take off from there.
If this does not occur, a stop loss should be set and losses should be covered. The accumulation/distribution indicator indicates that the majority of the accumulation took place around the same time as the price rocketed upwards in September. This is a positive sign for the cryptocurrency industry as a whole.
Another strategy is to enter the position with a limit order on the previous 52-week high. It is commonly assumed that the chart will then skyrocket with high volatility. A good discipline is to wait for another low consolidation to form before pyramiding up the positions as predicted by Solana.
Solana’s rapid rise in September is attributed to the blockchain network’s ability to support fast transaction times, as well as Solana’s ability to support smart contracts. With the seventh-largest market cap, it is now a top competitor to Ethereum. Investors and traders alike should be aware of the risks that cryptocurrencies entail.
They’ve always been high-reward, high-risk bets. The Solana token may be more trustworthy than other cryptocurrencies, but only time will tell if it overtakes Bitcoin as the most valuable cryptocurrency in terms of market capitalization in the coming years.