Solana and Avalanche Are Climbing in Tandem as Sentiment in the Cryptocurrency Market Improves

Solana and Avalanche are gaining bullish momentum after breaking through crucial resistance areas.

Solana and Avalanche overcome resistance

Solana and Avalanche look set to deliver substantial upside as the broader cryptocurrency market benefits from fresh upside winds.

Solana’s SOL token has gained nearly 20% in the past 36 hours. It moved from a low of $38.60 to a new monthly high of $46.10. This sudden rise allowed Solana to overcome a crucial resistance zone, which could lead to higher highs.

Solana broke through the central trendline of a parallel channel that had been developing on its four-hour chart. Trading history shows that every time SOL has breached this barrier since June 20, it has advanced towards the upper boundary of the channel. Now, a similar price action could push the asset towards $49 or even $52.

Avalanche also experienced a bullish impulse wave over the past 36 hours, rising from a low of $20.60 to a high of $24.80. The bullish impulse was triggered after AVAX broke out of a symmetrical triangle that had developed either on its four-hour chart. With two corrections occurring after the breakout, it looks like the token has enough liquidity to gradually move higher.

The height of the Y-axis of the triangle suggests that AVAX has entered a 38% uptrend towards $28. A sustained four-hour luster close above the $24.30 resistance level may further validate the bullish thesis.

Although the odds appear to favor the bulls, support levels are crucial due to the current uncertainty in the global crypto and financial markets.

If Solana fails to hold the central trendline of the channel at $42 as support, the bullish outlook could be invalidated. A four-hour luster close below this vital level could envision a profit price spike that sends SOL to $38.50 or $35.20. Likewise, Avalanche should avoid dropping below $22 as the drop could result in a retracement towards $20.

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