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Solana (SOL) broke above a key resistance level on Friday, fueling the bullish sentiment that prevailed over the past week. As a result, some analysts think that the fifth largest cryptocurrency by market capitalization may see a big bull run as “Uptober” approaches.
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Solana Retests $160 Resistance
Solana’s meeting began last week following the rise in markets driven by the US Federal Reserve’s rate cut. The jump pushed the price of the cryptocurrency above the $140 resistance level, effectively turning it into support.
SOL has failed to break this key level throughout the past month, covering the $130-$139 price range. This performance alarmed many investors and market watchers, who considered that the cryptocurrency is in danger of facing a major correction.
Since the bullish catalyst, Solana has seen a surge of 23%, breaking above the $150 barrier this week. Some analysts argue that a reversal of this signal will propel the price to the next key resistance level.
On Friday, Solana broke a key resistance level for the first time in a month, hitting $160 for the first time since late August. As of this writing, SOL has reached a daily high of $160.68, briefly holding above the key level.
This performance was apparently fueled by the “bullish vibes” surrounding the early release from prison of Binance founder Changpeng Zhao (CZ). The anticipation of his release continued to inspire a bullish market among investors, driving the SOL of 4% to jump over the hour and the price of Bitcoin to $ 66,000.
Is the SOL Value About to “Meet”?
Crypto analyst Horn Harris noted Solana’s price action on the weekly chart, saying it “looks crazy right now.” He emphasized that the SOL retested the Relative Strength Index (RSI) “positively” while doing a “complete reset” of the 50-day Moving Average (MA).
For the analyst, this performance suggests that the cryptocurrency will challenge the cycle high above $200 and go to the higher target soon. WiseAnalyze said the price of SOL is still “very low,” suggesting investors may yet jump on the bandwagon.
The trader has set his target for the end of the cycle at $400, “but it could go much higher.” However, he did not rule out the possibility of another rejection, pulling back to the $108-$120 support areas.
Similarly, Matthew Dixon also predicted the trajectory of Solana. The analyst believes that the reversal is justified, as many indicators suggest a correction. However, “the jury is out on the diminution.”
Dixon said the price of SOL will depend on whether “price action from the bottom is in the form of ABC or 123.” But “either way, recovery is possible.”
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Crypto analyst Byzantine General considers the SOL chart to look “pretty crazy.” The trader emphasized that Solana appears to be printing a bearish Adam and Eve (A&E) pattern, with a confirmation line around the $160 price range.
Based on this, Solana’s price could “go really well,” as it has the potential to break out towards the $200 resistance level if it successfully finds a key support level.
Featured image from Unsplash.com, Chart from TradingView.com