Solana’s SOL skyrocketed on October 21 as traders shifted focus from Bitcoin to the most promising altcoins.
Notably, the price of SOL is currently up as much as 15% to $ 202, its highest level since September 11th, an increase of nearly 30% in the past 36 hours.
Daily frame SOL price table | Source: TradingView
In-game capital rotation?
Bitcoin’s new all-time high (ATH) on October 20 also triggered price rallies in the altcoin market.
For example, Ethereum’s Ether delivered better returns on October 20 after closing at $ 4,170, up 7.32%. It continued to rebound to $ 4,374 on October 21, just $ 10 off the previous ATH of $ 4,384, and has currently returned to $ 4,126.
Ether price chart of the daily framework | Source: TradingView
In contrast, Bitcoin corrected more than 3.5% below $ 65,000. As a result, ETH / BTC rose more than 5% to hit an intraday high of 0.06289 BTC.
Likewise, SOL’s performance against USDT has outperformed Bitcoin for the past two days. This has caused SOL / BTC to surge more than 10% to 0.0032218 BTC, suggesting that traders have turned capital from the Bitcoin market to Solana.
Daily frame SOL / BTC price chart | Source: TradingView
Bull flag SOL is activated
Solana’s most recent rally also appeared as a bullish breakout from a multi-month consolidation channel.
SOL began to consolidate sideways in a triangle-like trading range after rallying more than 200% in the August-September period, causing the formation of more highs and lower highs along with trading volume to decline, which becomes the outlook on the channel to a pennant.
Since pennants are often a trend continuation indicator, their formation on the SOL chart after a major rally increased the prospect of driving the SOL price higher. Hence, the October 20th breakout represents a long rally with the target of a length equal to the size of the previous uptrend.
SOL / USD daily price chart raising a bull flag | Source: TradingView
In other words, the price target for SOL could be $ 250 by the end of the month. However, retesting the pennant’s upper trendline for support would risk weakening the bullish setup.
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According to Cointelegraph