Solana Eyes 20% Surge in November Amid Trump-Led Crypto Boom

Solana (SOL) has rallied by over 45% since Donald Trump’s reelection as the United States president on Nov. 6. It now eyes further gains, with a mix of technical indicators predicting a new record high by November’s end.

Solana Technical Analysis: SOL/USD Enters Descending Triangle Breakout Stage

As of Nov. 14, SOL had entered the breakout stage of its prevailing descending triangle pattern.

For the unversed, descending triangle patterns form when the price bounces between a falling trendline resistance and a horizontal trendline support. During uptrends, descending triangle patterns typically signal a potential bearish reversal.

However, in certain cases, the asset breaks above the triangle’s upper trendline, increasing its prices by as much as its maximum height.

In SOL’s case, the price has broken out to the upside, led by pro-crypto Trump’s election win. On his first day in the White House, Trump may remove anti-crypto SEC Chairman Gary Gensler from his post, paving the way for assets like SOL to be integrated into mainstream finance via friendlier regulations.

$SOL

Study buying dips pic.twitter.com/v3sZCaimcR

— Alejandro₿TC (@Alejandro_XBT) November 13, 2024

This strong fundamental favors SOL’s descending triangle breakout case. Its upside target for November lurks around the $267-270 range, up around 20% from the current price levels. That would also mark a new record high for the layer-one blockchain asset.

Further upside indications come from Solana’s weekly relative strength index (RSI), which was 65.45 as of Nov. 14. The reading indicates that SOL’s price has room to grow until the weekly RSI reaches the ‘overbought’ threshold of 70.

Bitcoin Capital Flows Boost SOL’s Upside Scenario

Solana is seeing further price growth due to its emerging bullish technical scenario versus Bitcoin (BTC).

The weekly SOL/BTC chart shows a developing ascending triangle pattern, marked by higher lows converging with horizontal resistance around 0.0028-0.003 BTC.

That suggests accumulating buying pressure. If a breakout occurs with significant volume, the target could extend to 0.0046 BTC based on the height of the triangle’s base.

Supporting this bullish case, Solana has traded above key exponential moving averages, reflecting sustained upward momentum. Additionally, the weekly RSI hovers around neutral, with a slightly positive trend signaling room for upward movement without the risk of immediate overbought conditions.