Since retesting near the $120.40 low on September 2, Solana’s native token, SOL, has had a stronger bullish outlook, featuring a seven-week rally and only one bearish close over that period. Following this price increase, the cryptocurrency’s market value rose, breaking through a key resistance level near $163.56, last seen on August 8th.
At the time of publication, SOL is trading at $175.89, reflecting an increase of 6.03% over the last 24 hours. Given the altcoin’s bullish price action, market analysts predict that the token could reach $200 in the coming weeks.
SOL prepares for rally as performance turns positive
From a technical perspective, the SOL cryptocurrency is poised for a rally as key indicators hint at a bullish continuation in the near future. For example, the Relative Strength Index is currently pointing higher, indicating that bullish sentiment for the token is rising in the short term.
The RSI line at 58.82 provides more room for prices to rise further before reaching the overbought level of 70, suggesting that SOL could continue its upward momentum in the coming days. The Moving Average Convergence Divergence indicator at 6.49 displays an identical position to the MACD line, reflecting a bullish crossover to the signal line.
In addition to this bullish price action, the MACD histogram bars show green bars extending above the zero line at 0.93. This means that SOL’s positive outlook is strengthening in the short term. Additionally, data from CoinGlas, an online analytics platform, indicates increased buying pressure as the token’s OI-weighted funding rate remains persistently positive.
This means that long Solana holders are willing to pay a short premium to keep their positions open, indicating confidence in the asset’s potential for further gains. Open interest in the cryptocurrency also bolsters this bullish outlook, rising 6.87% to $3.40 billion over the past 24 hours. Such optimistic data paints a promising picture for the SOL token, which may reach the $200 threshold.
Will SOL be able to break the $200 mark?
Given the current market conditions, Solana cryptocurrency is poised to approach the $200 threshold with the possibility of exceeding it and reaching higher levels. However, the success of this step depends on various key indicators. For example, the SOL token must break above the $182.84 resistance, matching the 78.6% Fibonacci retracement level, and close above it to confirm a sustained bullish trend. A break above this level could push Solana towards the $200 zone.
Conversely, if the altcoin fails to meet these requirements, its market value could return to the $163.56 support level before attempting another bullish breakout. However, if this zone falters, the cryptocurrency could fall deeper, possibly touching the $151.92 low near the 50% Fibonacci level.
