Solana (SOL) heads towards huge macro breakout

Solana (SOL) heads towards huge macro breakout

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After two recent filings for Spot Solana ETFs, the $SOL price is heading towards the top of a triangle within which it has transitioned sideways since mid-March. A huge breakout is coming. Will this be to the up or to the downside?

The omens are good for Solana right now. First giant asset manager VanEck files for a Spot Solana ETF, and then ARK 21Shares does the same thing. Of course, the granting of this by the SEC is potentially a year or more away, but the fact that this is what the institutions think is the next logical step, is incredibly bullish in itself.

This next year is also going to be full of comparisons between Ethereum and Solana, given that both layer 1s are competing for the crown of most users, transactions, and overall utility. Ethereum has its layer 2s which are helping to scale the network, while Solana is able to do everything on the main chain.

While Ethereum is looking out into the future with a myriad of upgrades that will seek to make it more competitive in the areas of scalability, speed, and fees; Solana is getting ready to implement its Firedancer validator client which could be an earth-shattering game changer for transaction speeds.

$SOL consolidates ready for potential breakout against $ETH

Source: TradingView

As regards the price of the Solana token, $SOL is not only in an uptrend against $ETH, but also against $BTC into the bargain. Since just over a year ago, $SOL has risen 487% against $ETH. Now consolidating above the 0.618 fibonacci, the $SOL price might be expected to continue gaining on $ETH from here, although there is still the unknown price impact of the impending Spot Ethereum ETFs.

$SOL sideways then up against $BTC

Source: TradingView

Against $BTC it is a similar story. $SOL has very strong support at 0.0017 sats, and the $SOL price has been bouncing from the 0.618 fibonacci level since the beginning of this year. The resistances will need to be overcome at 0.0023 and 0.0027 sats for $SOL to be able to then move into the next range that has a top of 0.0040 sats.

$SOL macro breakout against USD

Source: TradingView

Against its US dollar trading pair $SOL is moving towards the top of its triangle pattern. Once again, the fibonacci levels are excellent in displaying where the main support lies. The $SOL price has bounced repeatedly from the 0.618 fibonacci support, and candle wicks have been shooting down to confirm the bottom of the triangle.  

A breakout is coming, and given that $SOL is in an uptrend, the breakout is more likely to be to the upside. If this happens, the most important resistance is at $200. A breakout of this level would enable $SOL to stand on some beautiful price structure and be able to make its assault on the all-time high price of $260.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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