Here’s How High Solana Price Can Go In Uptober End?

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As a seasoned researcher who has witnessed the ebb and flow of the crypto market for several years now, it’s always fascinating to observe such surges in the price of assets like Solana (SOL). The recent rise above $170 is reminiscent of the bullish sentiment that characterized the early days of Bitcoin.

Recently, Solana’s price has experienced a considerable jump, reaching over $170 for the first time since early August, which has ignited optimistic feelings among investors. With October, often referred to as “Uptober,” drawing to a close, traders are pondering how high Solana might climb in the near future.

Why is Solana Price Up Today?

Currently, the SOL price is hovering near $170.17, a level it reached after reaching a two-month peak of $171.76 on October 21st. This digital asset has experienced a 7.1% increase in value over the past day, mirroring the surge in Bitcoin‘s price to approximately $69,400.

The increase in Solana’s price can be attributed to a significant rise in Bitcoin’s price over the weekend. Specifically, on October 17th, the value of Bitcoin surpassed $69,000 for the first time in approximately 2.5 months, which sparked a broader uptrend across the crypto market, moving it into a positive position.

Consequently, on the 1st of August, 2024, the SOL price surged back to levels last observed since then. After a brief surge in buying activity, the value of Bitcoin peaked at $69,519, only to swiftly retreat as traders seized the opportunity to cash out their gains.

Will Solana Continue Rising in October?

Based on information from Coinglass, it appears that traders are actively purchasing Solana (SOL) at the moment. This is indicated by a situation where the price shift and the shift in Open Interest (OI) are both increasing. When these two indicators increase together, they often suggest that traders are taking a bullish stance, or going Long on the asset.

Moreover, the funding rate has been on an upward trend starting from October 18th. This typically signifies a surge in optimism among traders, as a rising funding rate alongside price increases often indicates it. Furthermore, this uptick in SOL prices is likely due to derivative traders’ activities.

The data indicates a strong optimistic outlook among Solana traders, as they believe the value of the asset may increase further over the next few days.

SOL Price Analysis: How High Can It Go In Uptober?

In simpler terms, the price of Solana appears to have shaped a pattern called an “inverse head-and-shoulders,” which suggests a possible shift in its trend from downward (bearish) to upward (bullish). The fact that it has surpassed the resistance level around $160 – known as the neckline – strengthens this bullish prediction.

At present, the price stands at $170.58, and if it breaks out according to the pattern between the head and neckline, we can anticipate a potential rise toward approximately $190. This would translate to a 16.41% increase from its current position.

According to past market trends, the Solana (SOL) price might encounter hurdles near approximately $190 and $230 as it rises. Yet, if it manages to overcome this second obstacle, it could potentially surge to around $250, representing a substantial 46% growth from its current value.

The projected cost of SOL indicates robust backing at its earlier line approximately $160. There’s a possibility it might revisit this price range before moving upward, offering a possible buying opportunity. However, if the price struggles to stay above $160 and dips beneath that line, it could suggest market instability, potentially pushing it down towards support levels around $140 and $130.

For a while, it’s expected that the price may trend towards around $190-$195. This area will be our initial target for profit-taking. Over an extended period, if Solana (SOL) manages to break past the $190 resistance with significant power, the price could potentially rise further, reaching anywhere between $230 and $250.

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2024-10-21 11:12