Lately, the price of Solana Solana Sol (SOL) has been demonstrating bullish resilience and has seen significant growth above its downtrend line. Market participants are closely watching this current price action, with the $175 resistance acting as a pivotal point, and a break above it could set the stage for a potential recovery that could propel the crypto asset towards the $175 mark.
As the bullish sentiment around SOL continues to grow, this article seeks to analyze its current price movements above the downtrend line and the technical indicators that suggest sustained growth. The goal is to provide readers with a comprehensive understanding of SOL’s potential future trajectory.
SOL’s price was trading at approximately $169 and was up 5.12%, with a market cap of over $78 billion and a trading volume of over $3.5 billion at the time of writing. Over the past 24 hours, the asset’s market cap has increased by 5.21%, while its trading volume has increased by 69.07%.
Solana eyes $175 mark
On the 4-hour chart, after breaking above the downtrend line, SOL continued to maintain its bullish momentum, trading above the 100-day simple moving average (SMA). This sustained momentum could potentially set up a move towards the $175 mark.
The 4-hour Composite Trend Oscillator confirms that SOL may continue its bullish trajectory above the trendline as both the signal line and the indicator’s SMA are currently trending in the overbought zone. Furthermore, the signal line shows no sign of crossing below the SMA.
On the 1-day chart, after the breakout, Solana is currently attempting a single candlestick bullish move towards the $175 resistance mark, trading above the 100-day SMA. This bullish impulse could potentially lead the digital asset to reach the $175 mark.
Lastly, it can be seen that the signal line has crossed above the indicator’s SMA and crossed above the zero line, with both lines attempting to move towards the overbought zone. This composite trend oscillator formation suggests that the SOL price may continue its current bullish move above the trend line towards the $175 resistance.
The implications of the SOL bullish breakout
The current price action suggests that Solana is about to initiate an upward move above the trendline towards the $175 resistance mark. If the coin reaches this level and breaks above it, it could lead to a further rise towards the $188 mark. Once this level is breached, the digital asset could see a price surge towards the $205 resistance level and possibly other levels above it.
However, if Solana fails to break above the $175 resistance mark, it could start a fresh decline towards the resistance level. $160 support level. Furthermore, the cryptocurrency could see further price declines, potentially challenging the $118 support range and possibly lower levels if this support is breached.