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
To get started investing in Bitcoin, Ether, and SOL using Coinbase and receive a $10 sign up bonus, use this link.
To learn more about swing trading strategies, stock market trading, and how to trade cryptocurrencies, visit my course page.
To get started investing in crypto, earn $10 in Bitcoin as a signing up bonus and receive up to 7.4% interest on your account, use this special link.
Full Disclosure: I currently own Ethereum, SOL, and Bitcoin.
Full Disclosure: This post contains affiliate links to Gemini and Coinbase.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.
Comments