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

Notably, the cost of SOL increased by more eleven% 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 cost chart. Source: TradingView

Capital rotation in play?

A new Bitcoin all-fourth dimension high price on Oct. 20 triggered cost rallies beyond the altcoin market equally well.

For instance, Ethereum's native Ether (ETH) token posted amend intraday profits on Oct. 20, closing 7.32% higher around $4,170. On Oct. 21, the 2d-largest cryptocurrency rallied further to $4,374, merely $10 shy of its record high at $4,384 on Coinbase.

Conversely, Bitcoin corrected by more than than three.five% to below $65,000. As a effect, the ETH/BTC exchange surged by more than 5% to achieve an intraday loftier of 0.06289 BTC.

Similarly, SOL'due south performance confronting the U.Due south. dollar over the last 2 days came out improve than Bitcoin. That prompted SOL/BTC to climb past more than 8% on Oct. 21 to hitting 0.0026772 BTC, showing that traders rotated majuscule out of the Bitcoin market place to enter the Solana market.

SOL/BTC daily price chart. Source: TradingView

Bullish pennant triggered

Solana's latest cost 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. Equally a result, the formation of more than two higher lows and lower highs, coupled with a failing trade volume, raised the prospect of the channel being a pennant.

Related: Solana chart 'bull flag' eyes $250 despite SOL toll down 40% since concluding calendar week

Since a pennant is typically a trend continuation indicator, their germination on the SOL nautical chart afterwards a massive toll rally raised its prospects of sending SOL prices college. Thus, the breakout from Oct. 20 at present eyes an extended run-up, with its target sitting at a length equal to the size of the previous uptrend.

SOL/USD daily cost chart featuring a bullish pennant. Source: TradingView

In other words, the price target for SOL could be every bit loftier every bit $250 before the cease of the calendar month. Nevertheless, a retest of the pennant's upper trendline as support would risk invalidating the bullish setup.

The views and opinions expressed here are solely those of the writer and practise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a conclusion.