Solana ($SOL) to spearhead the upcoming altcoin rally
As Bitcoin ($BTC) and the whole of crypto nears a pivotal point, the next upward leg of the bull market could be about to take place. If the possible bearish scenarios can be avoided, the altcoins can start to rise. Solana ($SOL) is primed to lead this next potential surge.
Solana ($SOL) poised to dominate the market
Bitcoin ($BTC) is at a critical juncture, with potential paths leading to new record highs, continued sideways movement, or even a decline that might bring the price down to $73,000.
With short-term Stochastic RSIs mostly near or at the bottom, a positive turn in these indicators could provide the necessary upward momentum.
Among the large-cap altcoins, $SOL appears to be in the best position to lead the market out of the current slump. With the majority of transactions now occurring on the Solana blockchain and the complete rollout of the innovative Firedancer validator client still ahead, the $SOL price might soon reverse its decline and climb significantly.
Breakdown in Bitcoin Dominance
Source: TradingView
To determine whether altcoins can gain ground, it's crucial to examine the Bitcoin Dominance chart (BTC.D). This chart indicates that the price is beginning to consolidate below the rising wedge. If this pattern persists and dominance creates a lower low, the upward trend might be disrupted.
$SOL on the verge of a trend reversal
Source: TradingView
On the short-term chart, $SOL has been charting lower highs and lows. The major support at $202 was breached, and only when the price hit the subsequent support at $174 did the bulls manage to regain some control. However, there's still more work to be done.
For a reversal, $SOL needs to break above the next descending trendline. Only by reclaiming $202 as support can the downtrend be effectively reversed.
The potential of $SOL to lead the next altcoin rally
Source: TradingView
The weekly chart offers a clearer picture of $SOL's potential. Staying above the trendline and surpassing the $202 resistance is crucial, but it's from the lower end of the chart that bulls can find motivation.
The weekly Stochastic RSI indicators are nearly at their lowest point. This is more advanced than most major altcoins, positioning $SOL to rise first as the momentum fully supports the price increase.
While there's still progress to be made, indicator lines might hit bottom this week, with an upward turn possibly starting the next.
$SOL has also bounced from the bottom of a bull flag and significant support for its $BTC pair (SOL/BTC). Should $SOL break through the top of this bull flag, the price could soar in the final phase of the bull market. Keep a close watch on this one.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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