Solana Breaks Out
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.
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.
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Full Disclosure: I currently own Ethereum, SOL, and Bitcoin.
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