After a brief consolidation, the crypto markets appear to be back on track as the bullish momentum has again spiked. With the Bitcoin price heading towards $35,000, the altcoins also appear to be gaining strength. Among all, Solana has been displaying impressive gains as the token was determined to be dead after the infamous FTX collapse. However, the fear of liquidations continues to haunt the SOL price rally, but the technicals suggest a bullish breakout could be imminent.
The SOL accomplished forming a bullish pattern after hitting the September lows. After hitting the neckline of the inverted head and shoulder pattern, a breakout appeared, elevating the price levels beyond the pivotal resistance zone between $32.82 and $33.47. Now that the price has been consolidating firmly beyond these levels, it appears that the token is ready to fly high, hitting the next upper target close to $40.
The SOL price has been trading consistently since the start of the month, and hence a breakout was much expected. After the recent upswing, the RSI rose above its overbought levels, and despite a pullback, a bullish divergence has been observed. The price, on the other hand, has been hanging above the broken resistance and has not been rejected till now. Therefore, this suggests a huge potential that could largely depend on the BTC price movement.
In the short term, the levels around $32 to $33 appear to be more important, with a fragile level around $34. If the Solana price holds above these levels for the next couple of days, one can expect a larger jump around the higher resistance area above $40. However, the pivotal resistance zone lies around $45 to $55, which can be achieved with an extended bullish push along with a huge influx of buying volume.