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Solana Price Forecast: SOL could be next altcoin to breakout and rally 25%

  • Solana price sees a big tailwind from TMS Network gaining over 1,400%.
  • SOL gets more room for upside as the US Dollar weakens this Tuesday substantially.
  • All ingredients are there for a bullish breakout that could swing toward $26.

Solana (SOL) price is bound to send one of its most bullish signals to the market as a breakout is brewing for the bulls. With the TMS Network (TMSN) exploding by 1, is400%, SOL is being picked up alongside as a proxy trade for the altcoin. Adding fuel to the fire came this Tuesday as the US Dollar lost substantial levels against major G7 currencies and is fading against cryptocurrencies, opening up more upside potential.

Solana price is bound for a big bang with 25% pop

Solana price is in good shape on Tuesday as a few catalysts are brewing and opening up room in SOL for a leg higher. The first element is TMSN, which has grown 1,400% recently and is now entering its phase 2 of the presale stage. Solana is enjoying additional interest as it is affiliated with TMSN and is being used as a proxy trade for bulls who want to be part of the rally in a less volatile environment. An additional factor comes from the US Dollar that is fading this Tuesday as it loses important handles against EUR, GBP and JPY. 

SOL sees all their bullish ingredients being thrown in a pressure cooker that is starting to boil. Expect a breakout trade to happen soon, which will see SOL slicing through the red descending trend line, the 55-day Simple Moving Average (SMA) and the 200-day SMA. The first halt will be around $22 before then setting sail toward $26 by the end of this month.

SOL/USD  4H-chart    

SOL/USD  4H-chart    

A substantial risk is that this breakout trade could become too crowded with too much money positioned one way. A simple rejection against either one of the mentioned elements, like the SMAs or the red descending trend line could get nasty. A firm dip lower toward $18.66 could be painful, owing to a 10% loss.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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