NEW DELHI (CoinChapter.com) — There’s a strong possibility that Solana (SOL) outperforms Bitcoin (BTC) in the coming weeks. The SOL/USD exchange rate can rise by over 25% once there is a close above $62.80.
Solana Price Holds Uptrend Support
In the past few weeks, there has been a strong increase in SOL price above the $40.00 resistance. In one of the previous SOL price predictions, we discussed the importance of a close above the $40.00 resistance. The price settled above $40.00 and then rallied over 50%.
The bulls were able to pump the price above the $50 and $60 levels. The price traded to a new multi-week high at $68.13 before there was a pullback.
SOL corrected lower and traded below the $60 level. It tested the $55 support and remained well above the 50-day simple moving average (blue). A low was formed near $54.19, and the price seems to be setting up for a fresh rally.
It climbed above $60 and tested the 50% Fib retracement level of the downward move from the $68.13 swing high to the $54.19 low. The last three daily candles signal a positive trend and could spark more upsides.
Solana is now facing resistance near the $61.20 level. The first major resistance could be $62.80 or the 61.8% Fib retracement level of the downward move from the $68.13 swing high to the $54.19 low.
A clear upside break above the $62.80 resistance could fuel another rally. The next stop for the bulls might be near $68.00, above which SOL might accelerate higher toward the $75.00 level in the coming days.
Another Downside Correction in SOL?
Conversely, SOL price might struggle to settle above $62.80 and again correct lower. Immediate support is near the $58.50 level. The first major support sits at $57.50. There is also a major bullish trend line forming with support near $57 on the daily chart.
A downside break below the trend line might start an extended decline. In the stated case, the price could revisit the $54.20 support. The main uptrend support is now forming near the $51.20 level.
If the bulls fail to protect the $51.20 support, the price could test $44.60. Any more losses might clear the path for a test of the 50-day simple moving average (blue) at $36.00.
Solana Is Eyeing Breakout Versus Bitcoin
Fundamentally, recent data from DeFiLlama points that Solana’s decentralized exchanges (DEX), Orca and Raydium, trading volume jumped by over 50% in a week, surpassing the $3 billion mark and outperforming the BSC Chain in 24-hour trading volume. The Ethereum-alternative token is clearly making headlines and might continue to outperform Bitcoin and ETH in the coming weeks.
Additionally, the 4-hour chart of SOL/BTC suggests why Solana could outperform Bitcoin. The pair seems to be preparing for the next break. It is stable above the 50 simple moving average (blue, 4 hours), and the RSI is still above 50.
A clear move above the triangle resistance and then 0.00166BTC could send SOL soring toward 0.0018BTC in the coming sessions. The next major stop could be 0.0020BTC.
Overall, the SOL price is signaling a steady uptrend, and it might soon rally further above the $62.80 resistance. In the stated case, there is a high chance of a move toward $75. If not, Solana might start a downside correction toward $51.20.