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The fifth largest cryptocurrency by market cap, Solana (SOL), has returned to the spotlight since experiencing a significant breakout in its price recently. The token rose by over 10% on the back of the Federal Reserve’s interest rate cuts, once again capturing investor attention and creating a lot of talk about the price breakout.
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Since Solana has hit the $151 mark after weeks of trading in the narrow range of $130 to $139, analysts are now watching to see what happens next.
The fact that many traders are already hoping after SOL’s recent rally that it will actually be sustainable leaves a lot to be done. Indeed, the token stalled below the strong resistance levels at $140, trying to break it a few days before the rally.
This policy change may have been exactly what Solana needed to break two-month declines and gain broader market acceptance. Can Solana maintain this momentum or will the rally be short-lived? investors are considering their next steps.
Technical indicators and breakthrough potential
Currently, Solana’s technical indicators are strengthening significantly. Many experts believe that it should perform well in the coming days. Crypto analysts stated that SOL has shown reasonable toughness considering its immense performance against most altcoins on higher time frames.
$SOL#Solana is poised for a break to $150, but the bulls need to hold $138.
If successful, the next targets are $160 and possibly $180-$200.
A correction below $120 could lead to a decline towards $105. pic.twitter.com/C1PinLTlLQ
— Yuriy 🔶 BikoTrading | OrderFlow Trader (@Yuriy_Biko) September 19, 2024
SOL has broken above the 50-day moving average. The coin also cleared a high resistance level, translating into a 7% gain for the day, crypto analyst Yuriy said, while expecting SOL to break the $160 level with targets targeting $180 or even $200. However, he also warned that the key support remains at $138, and if that level gives way, prices could easily fall back to $120.
Attention all cryptomaniacs.
Seems like it $SOL $SOLUSD kept support at $120
This could be a rectangle that can make significant progress pic.twitter.com/id0eTzzsVW— Peter Brandt (@PeterLBrandt) September 20, 2024
Another veteran trader, Peter Brandt, echoed similar sentiments when he said that $120 provides long-term support. The altcoin has been consolidating into a rectangular pattern on the daily chart, and the $120 price has become the lower limit of the range since mid-April. Maintaining this position could therefore become a springboard for ‘significant progress’.
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Solana: bullish market sentiment
Market sentiment is cautiously optimistic around Solana as there is a mix of both bullish and neutral indicators. At a neutral 54, the Fear & Greed Index shows some caution among traders, although it is clear that Solana’s last few days have at least calmed the jitters somewhat. Solana managed to spend 14 of the last 30 days in the green, which is a good indication of her resilience.
Meanwhile, the token’s price volatility is hovering at 6.60%, implying that while changes are expected, the overall upward trend appears to be good. Investors who have been crossing their fingers waiting for the perfect time to enter the market will find that now is the opportune time as Solana has maintained significant momentum.
Featured image of BitGet, chart from TradingView
Credit : www.newsbtc.com
