Solana Outpaces Bitcoin Rally
![BITmarkets | Solana Outpaces Bitcoin Rally](https://wcms-cdn.bitmarkets.com/4461/!solusdbtc.jpg)
Jumping more than 12% in the week, Solana (SOL) has been outperforming Bitcoin for the better of 14 days, reaching a potential breakout point. The key question is whether Solana and the broader market are ready for this breakout or if further consolidation is yet to occur.
While Solana's overperformance against Bitcoin is noteworthy, it doesn't necessarily indicate a higher Solana price if Bitcoin declines. Currently, the market dynamics are such that Bitcoin is the leading force.
If Solana continues to perform well on the SOL/BTC chart and maintains its position within the blue box, a breakout is likely. Given Solana's significant narrative in this bull market, such breakout could attract long-term investors.
Daily timeframe analysis
SOLUSD - 1 Day Time Frame
Solana has yet to retest the Value Area High (VAH) marked by the Fixed Range Volume Profile indicator. It appears that Solana is replicating its previous price action, but it has not yet returned to the initial highs, indicating a Failure To Return.
The market is currently stronger, and a pullback to the VAH would likely be bought up if it occurs gradually. This would allow the 50, 100, and 200 Moving Averages to align correctly, signifying significant strength for this uptrend.
A decrease in volatility would create the best entry points. However, Bitcoin is currently experiencing selling pressure and could potentially drop to $65,000-$66,000 to retest some crucial Moving Averages.
Although such a pullback is healthy for Bitcoin, it could pose challenges for Solana, possibly causing the price to revisit the VAH.
When to buy Solana?
A favorable entry point might be found at the breakout of the first strong resistance or Local Top. The most notable indication of new highs would be if Bitcoin's price trades above $69,000 for a few days or weeks.
At that point, Solana is likely to trade above $190, creating excellent opportunities for entries. It is always advised to closely monitor market updates and price actions before making any investment or trading decisions.
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