Will your next price be USD 250 per SOL?

Solana’s SOL coin rose higher on October 21 as traders shifted focus from Bitcoin (BTC) to the more promising altcoins.

Certain The SOL price soared more than 11% to more than $ 196 per token, its highest level since September 11th. Together with the growth of the last 36 hours, SOL even increased by 26%.

SOL / USD daily price chart. Source: TradingView

Capital turnover at stake?

A new historic high for Bitcoin on October 20 also sparked price increases in the altcoin market.

Will your next price be USD 250 per SOL?
Will your next price be USD 250 per SOL?

For example, Ethereum’s native Ether (ETH) token posted better intraday gains on October 20, closing 7.32% higher at around $ 4,170. On October 21, the second largest cryptocurrency rebounded even further to $ 4,374, just $ 10 off its record of $ 4,384 on Coinbase.

In contrast, Bitcoin corrected more than 3.5% below $ 65,000. As a result, the ETH / BTC exchange rose over 5%, hitting an intraday high of 0.06289 BTC.

Similar, SOL’s performance against the US dollar has outperformed Bitcoin for the past two days. This caused the SOL / BTC pair to rise more than 8% on October 21st to hit 0.0026772 BTC, showing that traders were rotating capital from the Bitcoin market to enter the Solana market.

SOL / BTC daily price chart. Source: TradingView

Bullish flag activated

Solana’s recent price rally also appeared as a bullish breakout from its multi-month consolidation channel.

SOL began consolidating sideways within a triangular trading range after rebounding more than 200% over the August to September period. As a result, the formation of more than two higher lows and lower highs coupled with declining trading volume increased the possibility of the channel forming a flag.

Since a flag is typically a trend continuation indicator, its formation on the SOL chart after a massive price rally increased the chances of driving SOL prices higher. Because of this, the October 20th breakout now suggests a sustained spike and is targeting a length equal to the size of the previous uptrend.

SOL / USD daily price chart with bullish flag. Source: TradingView

In other words, the price target for SOL could be up to $ 250 by the end of the month. However, retesting the flag’s upper trendline as support would risk breaking the bullish setup.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every step of trading and investing involves risk and you should do your own research when making a decision.

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