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The fifth largest cryptocurrency by market cap, Solana (SOL), is back in the spotlight as it has seen a major breakout in its price recently. The token rose more than 10% during the Federal Reserve’s rate cut, again attracting the attention of investors and getting all the talk about its price breakout.
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Since Solana has reached the $151 mark after many weeks of trading in the narrow range of $130 to $139, analysts are now looking at what will happen next.
The fact that the recent SOL rally has many traders hoping that it could be sustained leaves much to be desired. Indeed, the token was stuck under the strong resistance levels of $140, trying to break them a few days before the meeting.
This policy reversal may be just what Solana needed to break a two-month slump and push for broader market acceptance. Can Solana maintain this momentum or is the rally short-lived? investors ponder their next steps.
Technical Indicators and Explosive Probabilities
Currently, Solana’s technical indicators are very strong. Many experts believe that it should do well in the coming days. Crypto analysts have pointed out that SOL has shown reasonable resilience given the outperformance of many altcoins at peak times.
$SOL#Suspense expects to break out of $150, but bulls need to hold $138.
If successful, the next target is $160 and possibly $180-$200.
A correction below $120 could lead to a drop to $105. pic.twitter.com/C1PinLTlLQ
— Yuriy 🔶 BikoTrading | OrderFlow Trader (@Yuriy_Biko) September 19, 2024
SOL broke the 50-day moving average. The coin also went through a high level of resistance, which translates into a rise of 7% per day, crypto analyst Yuriy said while expecting SOL to break the levels at $160 with targets at $180 or even $200. He also he warned, however, that key support remains at $138, and if that level drops, prices may return to $120.
Beware all cryptomaniacs.
It looks like $SOL $SOLUSD it held support at $120
This can be a rectangle that can initiate great development pic.twitter.com/id0eTzzsVW— Peter Brandt (@PeterLBrandt) September 20, 2024
Another veteran trader, Peter Brandt, expressed similar sentiments when he said $120 has long-term support. The altcoin has been forming a rectangular pattern on the daily chart, and the price of $120 becomes the lower limit of the range since mid-April. Therefore, holding this position may be the basis for “great advancement.”
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Solana: Bullish Market Sentiment
Market sentiment is optimistic for Solana as there is a mix of both bullish and neutral indicators. At a neutral 54, the Fear & Greed Index shows caution among traders, although it’s easy to see that Solana’s last few days have at least eased the jitters a bit. Solana managed to spend 14 out of 30 days on the green, which shows its durability well.
Meanwhile, the price volatility of the token is floating at 6.60% thus means that although changes are expected, the upward trend seems to be correct. Investors who have been crossing their arms and waiting for the right time to enter the market may find this a good time as Solana continues to hold a large share.
Featured image from BitGet, chart from TradingView