Since its retest around the $120.40 low on September 2, Solana’s native token, SOL, has been on a more potent bullish outlook, characterized by a seven-week rally, with only one bearish close during this period. Following this price uptick, the cryptocurrency’s market value has surged, breaking past key resistance levels of around $163.56, last seen on August 8.
As of press time, SOL trades at $175.89, reflecting a 6.03% increase over the last 24 hours. Considering the altcoin’s optimistic price action, market analysts are projecting the token may hit the $200 mark in the coming weeks.
SOL Poised for Rally as Technicals Turn Positive
From a technical perspective, the SOL cryptocurrency is poised for a rally as key metrics hint at a bullish continuation in the near term. For instance, the relative strength index presently points upward, indicating the token’s bullish sentiment is building up in the short term.
With its RSI line at 58.82, there is more room for further price growth before reaching the overbought 70 level, suggesting that SOL may continue its upward momentum in the coming days. The moving average convergence divergence indicator at 6.49 paints an identical posture with the MACD line, reflecting a bullish crossover with the signal line.
Adding to this optimistic price action, the MACD’s histogram bars show green bars expanding above the zero line at 0.93. This implies that SOL’s positive outlook is strengthening in the short term. In addition, data from CoinGlas, an on-chain analytics platform, indicates an increase in buying pressure as the token’s OI-weighted funding rate remained consistently positive.
This means Solana long position holders are willing to pay a premium to short ones to keep their positions open, indicating confidence in the asset’s potential for further gains. The cryptocurrency’s open interest also cements this bullish outlook, showing a 6.87% surge to $3.40 billion over the past 24 hours. Such optimistic data points paint a promising picture for the SOL token, possibly reaching the $200 threshold.
Will SOL Break Past the $200 Mark?
Given the current market conditions, the Solana cryptocurrency is poised to surge toward the $200 threshold, with the likelihood of surpassing it and reaching out for higher levels. However, the success of this move depends on various key metric indicators. For instance, the SOL token must challenge the $182.84 resistance, aligning with the 78.6% Fibonacci level, and close above it to confirm a sustained bullish trend. A breach above this level could push Solana toward the $200 zone.
Conversely, should the altcoin fail to meet these demands, its market value might revisit the $163.56 support level before attempting another bullish breakout. Yet, should this zone falter, the cryptocurrency might plummet deeper, possibly touching the $151.92 low around the 50% Fibonacci level.