SOL, the cryptocurrency of the Solana blockchain platform, has broken out of a tight cup and handle pattern and is now trading at a new high. There are a few things that I really love about this chart. First, we saw a massive move on heavy volume from the $40 level up towards $200 in only five weeks. This was followed by a constructive pullback to the 10-week line. It is important to note that SOL has not traded below its' 10-week moving average since July which is a very positive sign. In addition, it was tightening up really well earlier this week which is the type of action I love to see prior to a breakout. It is also encouraging to see volume come in today as SOL trades at a new high.
Overall, the cryptocurrency space seems to be heating up. My positions in Bitcoin, Ethereum, and COIN are all acting well which is another good sign for Solana.
While trading in cryptocurrencies, I always give more weight to Bitcoin and Ethereum since they are the two largest coins by market cap and by far the most well-known. If I decide to a take a position in something smaller like SOL, I make sure to trade a reduced position size to make sure my risk is in check.
Risk right. Sit tight.
-Tom
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Full Disclosure: I currently own Ethereum, SOL, and Bitcoin.
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