Solana (SOL) has proven to be a standout performer in the cryptocurrency market, with its price rising more than 11% over the past week. This impressive gain has outpaced that of larger cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), leading to SOL trading above $180, a new three-month high.
Several key factors contributed to these outstanding results, including significant whale activity, growing expectations for a possible exchange-traded fund (ETF), and a significant increase in total value locked (TVL) on the Solana network.
In this context, the cryptocurrency analyst Rekt Capital emphasized that based on technical indicators and historical performance, Solana is poised for potential growth and will exceed the $202 mark.
Technical Patterns and Key Levels to Watch
In accordance with Rekt Capital’s Analysis, the chart pattern indicates two important resistance levels for Solana. The first important resistance level is at $180, which was recently broken by the close of the weekly candle circled in green, signaling a bullish breakout.
Historically, a close above resistance often turns it into new support, suggesting a potential continuation of the uptrend. The next significant resistance level to watch is at $202. A break above this level would confirm bullish sentiment and potentially lead to further gains.
The $135 level has proven to be a reliable support, which was confirmed by previous successful retests.
This level is crucial as it has provided a solid base for the price bounce. Another support level is identified at $122, providing a safety net for any potential price corrections. Recent price action shows that $135 has been successfully tested, solidifying this level as a key support.
Volume Analysis and Potential Trend Continuation
Volume analysis further supports the bullish outlook. The bottom of the chart shows significant volume support at $19.54, $13.29 and $9.92, suggesting strong historical buying interest. Recent price action accompanied by increased volume indicates sustained buying pressure, reinforcing the positive sentiment.
A successful retest of $180.28 as new support is crucial for a potential continuation of the trend. If Solana holds this level, it could pave the way for further gains, targeting the next resistance at $202.84.
A breakout of this level could signal a continuation of the bullish trend, which would lead to an increase in price.
Solana Price Analysis
At the time of writing, Solana is trading at $175, down more than 3% daily, while on the weekly chart, SOL is up nearly 11%.
Despite the slight daily decline, overall weekly performance remains strong, highlighting the continued optimism in the market.
Investors and traders should keep a close eye on key support and resistance levels to make informed trading decisions.
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