Altcoins SOL, AVAX & DOT Breakouts Hint at Altseason Gains
Three leading altcoins—Solana (SOL), Avalanche (AVAX) and Polkadot (DOT)—are flashing critical chart patterns as altseason heats up. SOL has broken out of a bullish pennant on the 4-hour chart with an eight percent rally, eyeing a target of $238, supported by rising volume and the 50-period EMA. DOT similarly cleared a bullish pennant, projecting a 27% advance to $5.458 on strong momentum and expanding volume. In contrast, AVAX formed a bearish flag after a late-July sell-off, risking a 27% drop toward $18.31 if it breaks below the 50-period EMA at $23.59. RSI readings show SOL and DOT nearing overbought zones (75.8 and 67.1 respectively), while AVAX’s RSI sits at 63.5, indicating room for further downside. Traders should monitor these altcoins for breakout confirmations and manage risk around key support and resistance levels.
Bullish
Two of the three major altcoins—SOL and DOT—have confirmed bullish pennant breakouts with strong volume, clear momentum, and defined upside targets, signaling sustained buying interest during this altseason. Although AVAX shows a bearish flag that could lead to a deeper pullback, the dominant bullish setups suggest overall positive market sentiment for alternative tokens. Historically, similar chart breakouts in SOL and DOT during prior altseasons drove significant rallies, attracting momentum traders and fueling continued upside. In the short term, traders should watch for potential pullbacks on overbought RSI levels, while long-term prospects remain upbeat as altseason rotation intensifies and chart patterns align for further gains.