Solana (SOL) joined the latest crypto market pump after surging 10% on Thursday. The price of SOL broke above the main resistance level, once again reigniting the bullish sentiment among investors and traders who believe that the cryptocurrency is ready to return to the higher target.
Solana Breaks Above Key Resistance Level
Following the much-anticipated rate cut by the US Federal Reserve (Fed), the crypto market is up 5% in the last 24 hours. Many cryptocurrencies have registered green numbers in the past day, recovering from their performance of the past few weeks.
Solana, the fifth largest cryptocurrency by market capitalization, regained momentum on Thursday after regaining a key level. The token failed to break through the $140 resistance level in mid-September, combining within the $130-$139 price range of the past few weeks.
SOL had registered a 7% weekly drop on Wednesday, which spooked many investors and market watchers. Some crypto analysts have considered the token’s recent performance factored into a possible correction that could drive the token’s price to an annual low.
Long-time trader Peter Brandt suggested that the cryptocurrency could face a significant correction to the $80 support area if it continues to fail to retest this resistance level.
Nevertheless, the price of SOL has recovered from its disappointing performance, jumping more than 10% in the last 24 hours. The cryptocurrency passed the $140 mark on Thursday morning, breaking out of a two-month slump.
The price increase represents a 5.4% and 8.3% increase in the weekly and fortnightly periods respectively. Additionally, its daily market activity increased by 81.3% over the previous day, with a daily trading volume of $3.76 billion.
Experts Set the Next SOL Reference
Some analysts highlighted Solana’s performance, suggesting that the cryptocurrency is poised to target higher targets. Crypto analyst Jelle said that, at peak times, Solana has fared better than most altcoins.
Some market watchers have previously noted Solana’s strength since the start of Q3. During the market recovery, the cryptocurrency was considered “one of the strongest assets” after going sideways while other tokens made new lows.
Jelle emphasized that the price of SOL still holds “all important support levels even though many altcoins are down >50% from their highs.” Effectively, Solana has remained above the $120 support area since March, currently down 31% from its March high.
Similarly, crypto analyst Yuriy considers the recent performance of SOL to set the stage for an exit above the $150 resistance level. However, he warned that the bulls should hold the $138 mark, as failure to maintain this support may lead to a correction in the level of $120.
The analyst believes that a successful breakout will send the price of SOL to the $160 resistance area next, with a possible move towards the $180-200 target. As of this writing, SOL is trading at $143.3, a 12.2% increase in the last 24 hours.
