After a long period of consolidation in a symmetrical triangle pattern since March, SOL/BTC is attempting to break above the upper resistance line. If successful, Solana will reach a multi-month high. This analysis will explore the possibility of this scenario.
Solana Aims to Overtake Bitcoin
The SOL/BTC pair represents the exchange rate between Solana and Bitcoin, currently at 0.0024, representing a 14% increase over the past 12 days.
As the SOL/BTC pair rises, the value of SOL increases relative to BTC, meaning that SOL holdings are becoming more valuable relative to BTC. A look at the daily chart of the SOL/BTC pair shows that it is currently heading towards the upper resistance line of the symmetrical triangle it has been trading in since March. When an asset trades in this pattern, its price fluctuates between two converging trendlines, which form resistance and support levels.
If the price breaks above this resistance line, it will indicate that buyers have gained the upper hand over sellers, confirming the possibility of further price increases. Positive indicators from the Balance of Power (BoP) of the pair also suggest that a breakout may occur in the short term.
The BoP indicator of the SOL/BTC pair, which measures the relationship between buying and selling pressure in the market, is currently at 0.8. When the indicator is positive (above 0), buying pressure is stronger than selling pressure, indicating that there are more buyers than sellers, pushing the price higher.
The Relative Strength Index (RSI) of the pair also supports the bullish trend. At the time of writing, the RSI, which tracks overbought and oversold conditions in the market, is trending up at 60.26. This shows that SOL accumulation is high among investors, overwhelming any profit-taking efforts.
Solana Price Prediction: Multi-Month High Approaching
The SOL/BTC pair could hit a new high if the demand for Solana continues to outpace that of Bitcoin. According to the pair’s Fibonacci Retracement tool, if the price breaks above the upper resistance line, it could rise to 0.0031, the last price level on March 18.
If this happens, Solana could trade above $200 for the first time in the last seven months.
However, if Bitcoin strengthens against Solana, causing the SOL/BTC pair to decline, the breakout attempt could fail and the pair could continue trading within a descending triangle. In that case, it could drop to the 0.0021 support level, dragging Solana down to $133.58 if the buying pressure weakens significantly.
