Solana’s sol token has climbed over the last few todays, pushing higher as a time when the digital asset has been benefiting from numerous bullish developments.
The cryptocurrency reached $194.30 this morning, according to Messari data.
At this point, the digital currency was trading at its highest point in more than a month, and it was roughly 10% away from its all-time high of $214.36, additional Messari figures show.
Since that time, the sol token has pulled back somewhat, trading at roughly $182.60 at the time of this writing.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“Solana has moved into bull market territory,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, pointing to the cryptocurrency’s recent gains.
“With this week’s jump from $160 to above $190, it has created a bullish flag pole in the chart,” he stated.
“Technical analysts will now wait to see if the pole leads to a Bull Flag, meaning a steadying of the price, which would signal further bullish moves and new support,” added DiPasquale.
“Since Solana is now trading around 180, if it consolidates around 180, this could create a strong support flag leading to further gains.”
“Also buttressing Solana’s price is the upward movement of other alts like Ethereuem, following Bitcoin’s all-time high.”
Armando Aguilar, vice president of Digital Assets Strategy for Fundstrat Global Advisors, also weighed in.
He emphasized that while the sol token recently faced resistance near the $195 area, many indicators for the digital currency are bullish.
The digital currency has broken through some important resistance levels lately, which confirms that buyers are “not concerned about downward pressure.”
Further, he noted that the cryptocurrency has enjoyed more robust trading activity on Coinbase over the last 24 hours, which could be interpreted as increasing popularity.
Nick Spanos, cofounder of Zap Protocol, also weighed in.
“Its short-to-medium-term outlook looks very bullish,” he stated.
“We have seen it build momentum this month and it has attracted plenty of new buyers in the last few weeks, with the number of active token holders increasing considerably,” said Spanos.
“With the token’s RSI hovering around the 55-60 level, there is no indication that sol is overbought and could be on course for a correction,” he added.
“If the RSI continues to rise and goes above 70, that would suggest sol has become overbought and is potentially overvalued, in the short term at least.”
“Traders will be keeping an eye on the RSI, but the price action is more important. In particular, the bulls will be looking for sol to convincingly breach the $188 resistance level, before targeting a breakout through the token’s all-time high of $191.04, as this would pave the way for even stronger gains.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.