Expect noisy behavior, but we could get an explosive move to the upside on a breakout.
Solana broke higher on Friday to reach the crucial 200-day EMA. This is an indicator that a lot of people pay close attention to, so it should not be a huge surprise that we have stopped right at this level. The market has seen a big move as we have sliced through the 50-day EMA, which is a good sign as well. In general, this is a market that I think will continue to see an attempt to break out, but it will also follow Bitcoin.
Looking at this chart, it does look like we are trying to follow Bitcoin, as it broke out during the same session. Because of this, the market has shown itself to be attempting to rise right along with the rest of crypto as well, because we have also seen the Ethereum market take off. In general, crypto seems to be picking up momentum, and Solana is one of the favored “altcoins” for crypto traders. The market was doing quite well before everything started selling off.
The size of the candlestick for the day does suggest that we are going to continue to see buyers, so it is worth noting that the crypto markets gave up as much as 70% in some of the big markets, so there almost certainly has to be a certain amount of value hunting in this area. The market pulling back at this point could open up an attempt to break the $98 level, which opens up the possibility of a move towards the $80 level.
It also looks as if we are trying to form some type of basing pattern, and we could see this market break higher above the $120 level, and the “measured move” could have this market going as high as $160 over the next several weeks. This needs a bit of a boost from Bitcoin and Ethereum both, so they need to be bullish in order to have Solana get bullish as well. Overall, it is worth noting that we have a situation where momentum chasers will almost certainly be flocking to this market if we see the same behavior in other crypto coins. Expect noisy behavior, but we could get an explosive move to the upside on a breakout.