The fifth-largest cryptocurrency by market cap, Solana (SOL), has been back in the spotlight since it recently saw a major breakout in its price. The token surged by over 10% amid the Federal Reserve’s rate cuts, once again attracting the attention of investors and receiving all the attention on its price breakout.
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From Solarium has hit the $151 mark after weeks of trading in the narrow range of $130 to $139, analysts are now keeping an eye on what comes next.
The fact that SOL’s recent rally has already made many traders expect it to be sustainable leaves a lot to be desired. In fact, the token had been stuck below the strong resistance levels of $140, trying to break above them for a few days before the rally.
This policy change may have been exactly what Solana needed to break out of two months of declines and achieve broader market adoption. Can Solana maintain this momentum or will the rally be short-lived? Investors are pondering their next moves.
Technical indicators and breakout potential
Currently, Solana’s technical indicators are strengthening considerably. Many experts believe that it should perform strongly in the coming days. Crypto analysts claimed that SOL has shown reasonable resilience given the immense performance against most altcoins on higher time frames.
$SUN#Solarium It is ready for a breakout to $150, but the bulls need to hold $138.
If successful, the next targets are $160 and potentially $180-$200.
A correction below $120 could lead to a drop towards $105. image.twitter.com/C1PinLTlLQ
— Yuriy 🔶 BikoTrading | Order Flow Trader (@Yuriy_Biko) September 19, 2024
SOL has broken above the 50-day simple moving average. The coin also broke through a high resistance level, which translates to a 7% increase on the day, said crypto analyst Yuriy, as he expected SOL to break above $160 levels with targets aimed at $180 or even $200. However, he also warned that the key support remains at $138, and if that level succumbs, prices could easily drop to $120.
Attention all crypto maniacs.
It seems that $SUN $SOLUSD held support at $120
This could become a rectangle capable of launching a considerable advance. image.twitter.com/id0eTzzsVW—Peter Brandt (@PeterLBrandt) September 20, 2024
Another veteran trader, Peter Brandt, echoed similar sentiments when he said that $120 has long-term support. The altcoin has been consolidating in a rectangle pattern on the daily chart, with the $120 price becoming the lower boundary of the range since mid-April. Therefore, holding this position could become a springboard for a “considerable advance.”
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Solana: Bullish sentiment in the market
Market sentiment is cautiously optimistic around Solana as there is a combination of bullish and neutral indicatorsThe Fear & Greed Index, which is at a neutral level of 54 points, shows some caution among traders, although it is clear that Solana’s last few days have calmed the nerves a bit. Solana has managed to spend 14 of its last 30 days in the positive, which clearly indicates its ability to recover.
Meanwhile, the token’s price volatility stands at 6.60%, implying that while changes are expected, the overall bullish trend seems to be good. Investors who were crossing their fingers and waiting for the perfect time to enter the market may find that this is the opportune time as Solana has maintained significant momentum.
Featured image from BitGet, chart from TradingView
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