Raoul Pal, the founder of Real Vision and one of the frequent crypto commentators, thinks SOL, the home currency of Solana, a smart contract platform, has been “extremely bullish all year.” By Pal’s assessment, the coin is likely to double in the next few sessions, especially if there is a welcome break above the immediate liquidation level.
When he went to X on October 20, the founder noted that SOL is up 171% in 2023 alone. At the same time, looking at the technical candlestick arrangements, the immediate resistance level that traders should pay attention to is $30. This line, Pal believes, marks a critical liquidation level following the ‘great inverted head and shoulders’ pattern clearly visible in the daily chart.
In technical analysis, this pattern indicates that bear momentum is slowing, and the uptrend could be just around the corner. Often this occurs when prices reach three lows, with the middle low (the head) being lower than the other two lows (the shoulders).
Friend is optimistic about Solana, will SOL 2x?
Still, as Pal notes, the uptrend will hold once a high-volume bullish breakout above the “neckline” occurs. In the Solana price chart on the daily chart, the neckline is at $30, a psychological level that buyers have not been able to break through since recording in July 2023. This level also marks Solana’s highest price this year.
While Solana has struggled to overcome strong resistance from USDT (and technically USD bulls), SOL bulls have eased resistance levels against Ethereum (ETH) and Bitcoin (BTC). As of October 2023, SOL bulls appear to be reversing 2022 losses against the top two coins by market cap.
Highlighting this development, SOL is trading at new 2023 highs against Ethereum, reversing losses and sending the price higher as the bulls rush in. SOL bulls have breached two critical liquidation zones at spot levels against Ethereum, recorded in January and July. Still, Ethereum remains solid from a top-down preview, up 70% from the SOL value on the SOLETH daily chart.
Will SOL Rally Cause ‘Crypto Summer’ in 2024?
As SOL bulls double down, Real Vision CEO thinks the coin could lead the market to a ‘Crypto Summer’ in 2024. The upward trend could be fueled by several developments, especially in terms of partnerships established in the recent past.
In early September, Visa, a global payment processor, introduced a USDC settlement on Solana, citing the network’s high throughput. With this expansion, Visa hopes to “improve the speed of cross-border settlements and provide our customers with a modern option to easily send or receive money from Visa’s treasury.”
Feature image from Canva, chart from TradingView
