- Veteran trader and analyst Peter Brandt has recently provided an in-depth analysis on Solana (SOL).
- Brandt highlights that Solana has broken a significant descending triangle, hinting at potential upward momentum.
- He notes the initial surge could continue up to $200, which was the peak in May, analyzing the risk/reward ratio as not particularly appealing if this level is not surpassed.
Peter Brandt shares a critical analysis on Solana, predicting possible price movements and current market dynamics.
Solana’s Breakthrough: A Look at the Descending Triangle
In his recent analysis shared on social media platform X, Peter Brandt points out that Solana has broken through a notable descending triangle. This, according to Brandt, might signal a continuation of the upward trend. He suggests that Solana’s price might initially rise to $200, reflecting its peak level in May. However, Brandt advises caution, stating that the risk/reward ratio might not be favorable if this high is not breached.
Volume Analysis and Moving Averages: Indications of Market Strength
Brandt’s analysis also includes significant observations on Solana’s moving averages and volume data. He indicates that the 8-day (171.925) and 18-day (156.451) simple moving averages (SMA) are trending upwards and lie below the current price level, which suggests short-term positive momentum. Furthermore, the rise in trading volume accompanying the price increase demonstrates that the movement is backed by solid fundamentals. This provides a basis for strategic decision-making, according to Brandt.
Threshold Levels and Long-term Prospects
Brandt also addresses critical price thresholds that could indicate further gains. Specifically, he highlights the level of 180.880. Some analysts believe that surpassing this level would confirm a breakout, while others remain cautious, awaiting further confirmation above the peak levels of May. Brandt emphasizes that exceeding the high established in May is a crucial milestone that would affirm the bullish momentum.
Conclusion
In summary, Peter Brandt’s analysis offers a cautious yet hopeful outlook for Solana’s near-term price action. By breaking a descending triangle and maintaining positive momentum in volume and moving averages, Solana might continue its upwards trend. However, the confirmation of a breakout above the key level from May remains crucial to solidify this bullish perspective. Investors are advised to consider these factors and exercise due diligence in their trading strategies.
