Solana (SOL) rose on October 21 as traders shifted focus from Bitcoin (BTC) to the most promising altcoins.
Notably, the price of SOL has soared more than 11% to over $ 196 per token, its highest level since September 11th. Combined with the increase in the past 36 hours, SOL has increased to 26%.
In-game capital rotation?
A new Bitcoin all-time high on Wednesday also triggered price rallies in the altcoin market.
For example, Ethereum’s native token Ether (ETH) posted better intraday returns on Wednesday, closing 7.32% higher around $ 4,170. Today, the second largest cryptocurrency rebounded further to $ 4,374, just $ 10 off the record high of $ 4,384 on Coinbase.
In contrast, Bitcoin corrected more than 3.5% below $ 65,000. As a result, the ETH / BTC exchange rebounded more than 5%, hitting an intraday high of 0.06289 BTC.
SOL has also outperformed Bitcoin against the US dollar for the past two days. This caused SOL / BTC to rise more than 8% to 0.0026772 BTC on Thursday, suggesting that traders have moved capital from the Bitcoin market to the Solana market.
Bullish flag activated
Solana’s recent rally is also a bullish breakout from its multi-month consolidation channel.
SOL began a sideways consolidation in a triangle-like trading range after rising more than 200% in the August-September period. As a result, the formation of more than two lower lows and lower highs coupled with reduced trading volume has increased this channel’s prospects for a pennant.
Related: Solana “bullish” chart hits $ 250 despite SOL price down 40% since last week
Since pennants are often a trend continuation indicator, their formation on the Solana chart after a major rally increased the prospect of driving the SOL price higher. As a result, Wednesday’s breakout is now an extended rally, targeting the length of the previous uptrend.
In other words, the price target for Solana could be $ 250 by the end of the month. However, retesting the Pennant upper trendline as support would risk disrupting the bullish setup.