• SOL’s price increased by more than 12% in the last seven days. 
• Market indicators turned bearish on the token.

Solana [SOL] has successfully broken above a key bullish pattern that hinted at a continued price uptick in the coming days. On top of that, an indicator has flashed a buy signal for SOL.

Let’s take a look at what’s going on and assess whether SOL can continue its bull rally in the coming days. 

Solana’s bullish move

CoinMarketCap’s data revealed that Solana’s price increased by more than 12% in the last seven days. However, the last 24 hours were bearish, as the token’s price dropped by over 1%.

At the time of writing, SOL was trading at $174.5 with a market capitalization of over $81 billion, making it the fifth-largest crypto.

But this recent setback might be short-lived, as SOL managed to break above a bullish pattern. As per World of Charts’ recent tweet, SOL broke above a bullish pennant pattern and was already running in a 25% profit.

If SOL continues to follow this trend, then investors might soon witness another major price uptick in the coming days.

Apart from this, Ali, yet another popular crypto analyst, recently posted a tweet highlighting another bullish development. Notably, Solana’s TD sequential flagged a buy signal.

When this occurs, it means that the chances of a price uptick are high. 

Is Solana ready for a bull rally?

AMBCrypto then checked the token’s on-chain data to see what metrics suggested a bull rally. We found that SOL’s volume remained high in the last week, which can be inferred as a bullish signal.

Its Social Volume also increased, reflecting its popularity. Additionally, Solana’s Weighted Sentiment went into the positive zone. This suggested that bullish sentiment around the token was dominant in the market. 

We then planned to check the token’s daily chart. As per our analysis, SOL’s price touched the upper limit of the Bollinger Bands, which often results in price corrections.

Additionally, its Relative Strength Index (RSI) registered a downtick, further suggesting that the chances of a price drop were high. Nonetheless, the MACD displayed a bullish advantage in the market.

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Is your portfolio green? Check out the SOL Profit Calculator 

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Our analysis of Hyblock Capital’s data revealed that if the bears take control of the market, then it won’t be surprising to see SOL dropping to $166.

However, in the event of a continued bull rally, investors might witness SOL touch $190 in the coming days or weeks.

Avalanche (AVAX) strengthened its case for a possible upside run in direction of $160 within the coming periods because it broke out of a basic bullish sample earlier this week.

Dubbed “bull flag,” the sample emerges when the worth consolidates decrease/sideways between two parallel trendlines (flag) after present process a robust upside transfer (flagpole). Later, in principle, the worth breaks out of the channel vary to proceed the uptrend and tends to rise by as a lot because the flagpole’s peak.

AVAX went by a related worth trajectory throughout the final 30 days, containing a roughly 100% flagpole rally to almost $150, adopted by over a 50% flag correction to $72, and a breakout transfer above the flag’s higher trendline (round $85) on Dec. 15.

AVAX worth continued rallying after breaking out of its bull flag vary, reaching virtually $120 on Friday however eyeing an extra leg up in direction of its bullish continuation goal close to $160. The extent appeared after including the peak of AVAX’s flagpole, which is round $75, to the present breakout level close to $85.

Per week filled with bullish AVAX occasions

The current shopping for interval within the Avalanche market picked momentum additionally due to a flurry of constructive catalysts this week.

AVAX jumped almost 10.50% on Tuesday as Avalanche added the native model of USDC, a dollar-pegged stablecoin issued by Circle, on its blockchain.

Moreover, a report penned by Financial institution of America analysts printed on Dec. 10, known as Avalanche a viable different to the main good contract platform Ethereum. That coincided with AVAX gaining one other 16%.

On Thursday, AVAX rallied to its two-week excessive after BitGo, a crypto custodian with over $64 billion price of belongings underneath administration, introduced that it will assist the token.

Nonetheless, a modest selloff on the native worth high pushed AVAX decrease. Th get well Friday as Avalanche introduced that it has collaborated with web3 accelerator DeFi Alliance to launch a gaming accelerator program.

1/ Avalanche is collaborating with @DeFiAlliance to deliver its accelerator packages to the Avalanche group

Apply by Jan 7 right here: https://t.co/6HcJOLxKxA

Earlier than you apply, examine these the explanation why Avalanche needs to be your most well-liked platform: pic.twitter.com/GhdHBhQNgb

— Avalanche (@avalancheavax) December 17, 2021

All of the occasions talked about above pointed in direction of the Avalanche ecosystem’s development. As an illustration, with USDC, the mission promised to offer a viable different to Ethereum’s extremely costly Tether (USDT) stablecoin transactions.

Furthermore, by gaining BitGo as AVAX’s institutional custodian, Avalanche seems to be prepping for catering to accredited buyers. Mike Belshe, CEO of BitGo, defined:

“Institutional custody just isn’t the identical as retail custody, and BitGo wallets and custody have been designed from the bottom as much as meet the wants of institutional buyers, and BitGo is the one impartial certified custodian centered on constructing the fitting market construction and amenities to allow establishments to enter the digital asset area with confidence.”

AVAX worth dangers

One of many remaining draw back dangers round AVAX considerations the crypto market efficiency, on the entire.

Intimately, AVAC rallied in per week that witnessed all the cryptocurrency market capitalization lose greater than $114 billion, with main crypto belongings Bitcoin (BTC) and Ether (ETH) plunging over 7% and 5% week-to-date. Issues over the Federal Reserve’s tapering plans catalyzed the market selloff.

Subsequently, it seems that merchants checked out AVAX as their short-term hedge towards the crypto market drop, largely pushed by a string of constructive information. 

Furthermore, the AVAX/BTC pair was up almost 40% week-to-date at round 0.00245 BTC on the time of writing, with the pair’s relative power index (RSI) coming into overbought territory. That might immediate AVAX to weaken towards BTC within the coming periods.

Associated: ‘Monster bull transfer’ means whales might safe the following Bitcoin worth surge

The same final result could also be potential in AVAX/USD’s case as its weekly RSI treads close to overbought ranges.

Nevertheless, the pair is prone to retain its bullish bias so long as it holds above its 20-week exponential transferring common (20-week EMA) as assist. As proven within the chart above, the inexperienced wave has been capping AVAX’s draw back makes an attempt since August 2020.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, it is best to conduct your individual analysis when making a choice.