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Ethereum-killer Solana prints new all-time highs as SOL marches to $355

  • Solana price triggers a theoretical long entry from recent analysis.
  • New all-time highs are likely to continue as Solana enters price discovery mode.
  • Downside risks present near the $260 value area.

Solana price has been on an absolute tear during the first few days of November. Compared to Ethereum and Bitcoin, Solana doesn’t appear to have near the amount of reservation or indecision when it comes to pushing new highs.

Solana tags the $250 value area but bears likely to take over if momentum drops near the $260 value area.

Solana price triggered a long entry from a previously identified trade setup on October 28th. The hypothetical entry was a buy stop at $225 with a stop loss at $205 and a projected profit target of $355. The entry was based on the break out of a double-top that confirmed a bullish Point and Figure pattern known as the Bearish Fake-out. The Bearish Fake-out pattern develops when price drops two boxes below a multiple-bottom followed by a subsequent new X-column that retraces higher and creates a breakout above a multiple-top.

SOL/USDT $5.00/3-box Reversal Point and Figure Chart

There are some immediate downside risks that should be observed. The current X-column has thirteen Xs in it. If Solana price moves to $260, that will add two more Xs to that column for a total of fifteen. Fifteen or more Xs or Os in a single column is a Point and Figure pattern known as a Spike Pattern. Spike Patterns are a risk, especially when an instrument is in price discovery mode. The entry on any Spike Pattern is the three-box reversal with a three-to four-box trailing stop-loss. Initial profit targets are generally between the 50% and 61.8% Fibonacci retracement levels of the current swing - that would mean a return to the $215 to $225 value areas.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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