Prominent pseudonymous cryopto analyst “Pentoshi” has been keeping a close eye on Solana (SOL), a rival to Ethereum (ETH).
He stated that as long as Solana’s price remains above $22.30, he maintains a positive view on the cryptocurrency. Pentoshi’s analysis is based on high time frame (HTF) price action, a method that focuses on longer-term trends rather than short-term fluctuations. He believes this approach is more suitable in the current market environment, which he perceives as being filled with forced trades.
Solana has experienced a significant rally since June, with its price increasing by more than 94% from a low of $12.80 to $24.89 at the time of Pentoshi’s comments. However, the analyst also warned that if Solana’s price falls below the crucial $22.30 level, it could further decline to a support level of $20. This level has served as the lower bound of Solana’s price range for most of 2023.
Pentoshi’s analysis is based on the premise that Solana’s price action will hold its range highs. If the price starts to fall below $25, he believes the next key support level to watch is $22.30. He also expressed a bullish sentiment on communities with a cult-like following for the next bull run, suggesting that strong community support could drive the success of projects like Solana.
Turning his attention to Bitcoin, Pentoshi notes that Bitcoin’s price action has been relatively stagnant for weeks. He is looking for a break of the $29,700 level as the next signal to go long on Bitcoin. He suggests two options for a long position here: either reclaim the range Bitcoin just broke down from at $29,700 or bid deeper.
At the time of writing, Bitcoin is trading at around $29,292, down 1.04% during the last 24 hours.
