The fifth-largest cryptocurrency by market cap, Solana (SOL), has been back in the spotlight since it recently saw a significant breakout in its price. The token surged over 10% amid the Federal Reserve’s rate cuts, once again catching investors’ attention and garnering all the talk about its price breakout.
Related Reading
Since Solana hit the $151 mark after weeks of trading in the tight $130 to $139 range, analysts are now keeping an eye on what’s next.
The fact that SOL’s recent rally has already led many traders to hope that it could actually be sustainable leaves much to be desired. In fact, the token was stuck below strong resistance levels at $140, attempting to break through them for a few days before rallying.
This policy shift may have been exactly what Solana needed to break out of two-month declines and push for broader market adoption. Can Solana sustain this momentum, or will the recovery be short-lived? Investors ponder its next moves.
Technical indicators and potential for disruption
Solana’s technical indicators are currently strengthening considerably. Many experts believe that it is expected to perform well in the coming days. Crypto analysts have stated that SOL has shown reasonable resilience, given its immense performance against most altcoins on longer time frames.
$SUN#Solana is poised for a breakout to $150, but bulls need to hold $138.
If successful, the next targets will be $160 and potentially $180-$200.
A correction below $120 could lead to a drop to $105. pic.twitter.com/C1PinLTlLQ
— Yuriy 🔶 BikoTrading | OrderFlow Merchant (@Yuriy_Biko) September 19, 2024
SOL broke above the 50-day simple moving average. The coin also passed a high resistance level, which translates into a 7% increase on the day, crypto analyst Yuriy said, as he expected SOL to break above the $160 levels with targets aimed at $180 or even $200. He also warned, however, that the key support remains at $138 and if this level succumbs, prices could easily fall to $120.
Attention all cryptomaniacs.
It seems $SUN $SOLUSD held support at $120
This could become a rectangle capable of launching a considerable advance pic.twitter.com/id0eTzzsVW-Peter Brandt (@PeterLBrandt) September 20, 2024
Another veteran trader, Peter Brandt, echoed similar sentiments when he said that $120 is a long-term support. The altcoin has been consolidating in a rectangle pattern on the daily chart, and the $120 price has been the lower limit of the range since mid-April. Thus, holding this position could become a springboard for a “significant upside.”
Related Reading
Solana: Bullish Market Sentiment
Market sentiment is cautiously bullish around Solana as there is a combination of bullish and neutral indicators. At 54 neutral, the Fear and Greed Index shows a bit of caution among traders, although it is easy to see that Solana’s last few days have at least calmed the nervousness a bit. Solana has managed to spend 14 of the last 30 days in the green, which is a good indication of its resilience.
Meanwhile, the token’s price volatility hovers at 6.60%, implying that while changes are expected, the overall upward trend looks good. Investors who have been crossing their fingers and waiting for the perfect time to enter the market may find that this is the moment of opportunity as Solana has maintained significant momentum.
Featured image from BitGet, chart from TradingView