Solana gains over 26% in two days — $250 SOL price target next?

Solana’s latest price rally comes in the wake of new Bitcoin all-time highs above $65,000.

Solana (SOL) rallied higher on Oct. 21 as traders shifted focus from Bitcoin (BTC) to the most promising altcoins.

Notably, the price of SOL increased by more than 11% to over $196 a token, the highest level since Sept.11. Combined with the gains recorded in the previous 36 hours, SOL was up by as much as 26%. 

SOL/USD daily price chart. Source: TradingView

Capital rotation in play?

A new Bitcoin all-time high price on Wednesday triggered price rallies across the altcoin market as well.

For instance, Ethereum’s native token Ether (ETH) posted better intraday profits Wednesday, closing 7.32% higher around $4,170. Today, the second-largest cryptocurrency rallied further to $4,374, just $10 shy of its record high at $4,384 on Coinbase.

Conversely, Bitcoin corrected by more than 3.5% to below $65,000. As a result, the ETH/BTC exchange surged by more than 5% to reach an intraday high of 0.06289 BTC.

Similarly, SOL’s performance against the U.S. dollar in the last two days came out better than Bitcoin. That prompted SOL/BTC to climb by more than 8% Thursday to hit 0.0026772 BTC, showing that traders rotated capital out of the Bitcoin market to enter the Solana market.

SOL/BTC daily price chart. Source: TradingView

Bullish pennant triggered

Solana’s latest price rally also appeared as a bullish breakout out of its multi-month consolidation channel.

SOL started consolidating sideways inside a Triangle-like trading range after rallying by more than 200% in the August-September period. As a result, the formation of more than two higher lows and lower highs, coupled with a declining trade volume, raised the prospect of the channel being a Pennant.

Related: Solana chart ‘bull flag’ eyes $250 despite SOL price down 40% since last week

Since Pennant is typically a trend continuation indicator, their formation on the Solana chart after a massive price rally raised its prospects of sending SOL prices higher. Thus, the breakout from Wednesday now eyes an extended run-up, with its target sitting at length equal to the size of the previous uptrend.

SOL/USD daily price chart featuring Bullish Pennant. Source: TradingView

In other words, the price target for Solana could be as high as $250 before the end of the month. However, a retest of the Pennant’s upper trendline as support would risk invalidating the bullish setup.

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