Solana shows what it’s like to see a great up-trending chart. With an uptrend observed in mid-February 2021 and after a solid consolidation between March and August 2021, the market’s price action is seen. In August, we can see a heavy price volume action with a little consolidation forming a cup and handle pattern.
In this period, the price took off from the lows of $20 to upwards of $80. A little resistance is seen in the handle pattern between the $60 to $80 price range. Afterward, the chart suddenly takes off to reach the spectacular highs of around $200. This price action is usually observed in high-growth stocks.
What we observed during August and September is a good price volume action. In this sort of market behavior, two strategies can be used. The first is to let the price touch the 50-day moving average and enter a position there. It is assumed that the Solana price will touch the moving average and take off from there.
If this doesn’t happen, one should put a stop loss and cover their losses. The accumulation/ Distribution indicator shows that most of the accumulation happened around the same time period as the price rocketed upwards in September. This is a good sign for emerging cryptocurrency.
Another strategy is to put a limit order on the previous 52-week high and enter the position. It is usually assumed that the chart will skyrocket from there with high volatility. A good discipline is to wait for another low consolidation to form and again pyramid up the positions. To know the future performance of the coin, click here and know more about the future price prediction of Solana for upcoming years.
The rapid climb of Solana in September is attributed to the blockchain network capability, which has fast transaction times, and Solana is also capable of supporting smart contracts. This record price made it a top competitor to Ethereum with the seventh-largest market cap. Investors or traders alike should be well aware of the inherent risks cryptocurrencies have.
They have always been high-risk, high-reward plays. The Solana token might be more reliable than other cryptocurrencies, but only time will tell if it becomes the number one cryptocurrency in terms of market capitalization over the next few years.