Solana (SOL), despite a robust backing from its investor community and historical quick recoveries, finds itself trading below the crucial $180 level. Recently, the SOL token plunged past a rising wedge formation, experiencing a 15% decline. Nevertheless, Solana’s outlook for the medium to long term remains positive. The 50-day moving average, currently at $158.05, presents significant resistance, while recurring support is found near $151.96. This pattern suggests continued buying interest, with decreasing selling pressure indicated by the MACD and potential stabilization above $170, paving the way for possibly reaching new peaks beyond $180.
Can Technical Signals Propel SOL?
Key indicators point towards a bullish trend for Solana. Notably, two consecutive Fair Value Gap (FVG) zones remain unfilled. As buyer interest reinvigorates, the price rallying into this “re-entry pocket” with increased activity heightens the chances of surpassing the 50-day moving average. This level is seen as crucial for breaking the bearish trend. Meanwhile, the Relative Strength Index (RSI) is still far from the overbought zone, hinting at further upward potential.
Historically, Solana has shown a quick uptick once above central averages. Investors are paying close attention to the significant volume clusters within the $170–$200 price range in the options arena. Achieving a daily close above these volumes might spark algorithmic purchases, bolstering momentum.
Will Solana Overcome Its $180 Challenge?
The $180 mark is not just another level for Solana; it is a formidable psychological threshold that has seen numerous tests since late 2024. Despite initial gains often followed by retracements driven by profit-taking, the recent selling volume was notably less, indicating a weakening of seller strength and potential strides towards the $200 zone.
A notable attenuation in the MACD’s selling bars hints at a forthcoming Golden Cross formation. A close above $170 could lead to a crossover of moving averages, potentially acting as a trigger towards $200. From there, setting sights on $220–$240 as a new peak isn’t beyond reach.
- The 50-day MA at $158.05 is a critical resistance level for SOL.
- Support frequently emerges around $151.96, indicating solid buying pressure.
- Potential stabilization over $170 suggests room for upward momentum.
- A daily close above $200 may trigger automatic buying protocols.
- The MACD hints at a Golden Cross, boosting confidence for higher targets.
Solana’s potential to breach significant resistance levels remains promising, fueled by positive technical signals and steadfast investor interest. All eyes are on whether these elements will suffice to push past longstanding barriers and set new records.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/solana-soars-despite-market-obstacles