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The fifth largest cryptocurrency by market capitalization, Solana (SOL), is back in the spotlight as its price has recently surged significantly. The token surged by over 10% on the back of the Federal Reserve’s interest rate cuts, drawing investors’ attention once again and sparking a lot of talk about its price boost.
From Solanum reached $151 after weeks of trading in a narrow range of $130-$139, analysts are closely watching what happens next.
The fact that SOL’s recent rally has already made many traders hope that it may actually be sustainable leaves a lot to be desired. In fact, the token has been stuck below the powerful resistance levels of $140, trying to break through them for a few days before the rally.
This policy change may have been exactly what Solana needed to snap a two-month slide and push for broader market adoption. Will 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 significantly. Many experts believe that it should succeed in the coming days. Cryptocurrency analysts stated that SOL has shown reasonable endurance, considering the huge performance compared to most altcoins on higher time frames.
SALT#Solana is ready to break out to $150, but bulls need to hold the $138 level.
If successful, next targets are $160 and potentially $180-200.
A correction below $120 could lead to a decline towards $105. photo:twitter.com/C1PinLTlLQ
— Yuri 🔶 BikoTrading | OrderFlow Trader (@Yuriy_Biko) September 19, 2024
SOL broke above the 50-day uncomplicated moving average. The cryptocurrency also broke through a high resistance level, which translates into a 7% gain on the day, said crypto analyst Yuriy, expecting SOL to break through $160 levels with targets at $180 or even $200. However, he warned that key support remains at $138, and if this level breaks, prices could easily fall to $120.
Attention all crypto-maniacs.
It looks like SALT SOLUSD maintained support at $120
This could become a rectangle capable of launching significant progress photo:twitter.com/id0eTzzsVW— Peter Brandt (@PeterLBrandt) September 20, 2024
Another seasoned trader, Peter Brandt, expressed similar sentiments when he said that $120 is a long-term support. The altcoin is consolidating in a rectangular pattern on the daily chart, with $120 becoming the lower end of the range since mid-April. So, holding this position could become a springboard for “significant progress.”
Solana: Bullish market sentiment
The market sentiment around Solana is cautiously confident because a mix of bullish and neutral indicators. At a neutral level of 54, the Fear and Greed Gauge is showing some caution among traders, although it’s basic to see that Solana’s recent days have at least calmed the anxiety 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 is at 6.60%, which means that while changes are expected, the overall uptrend seems to be in order. Investors who have been keeping their fingers crossed and waiting for the perfect time to enter the market may find that this is an opportune time as Solana maintains significant momentum.
Featured image from BitGet, chart from TradingView
