- Solana price has breached a critical roadblock after multiple attempts.
- SOL could make a 14% climb to $120, levels last tested on December 26.
- A break and close below the 100-day SMA at $97.24 would invalidate the bullish thesis.
Solana (SOL) price is trading with a bullish bias as it has for the past few weeks, but its upside potential remains capped. Nevertheless, a widespread revival recourse, reinforced by the hype around the Chinese Lunar New Year and the Year of the Dragon, could provide tailwinds for the Layer 1 (L1) token.
Also Read: Solana surpasses Bitcoin in weekly performance, garners 85,000 pre-orders for Solana Mobile
Solana breaches key resistance
Solana (SOL) price has breached a key resistance, the $104.92 supplier congestion level. SOL has faced a rejection from this blockade multiple times before with the latest foray hinting at a possible continuation rally.
Downward support remains strong as offered by the 25, 50, and 100-day day Simple Moving Averages (SMA) at $97.24, $92.69, and $80.02, respectively. The inclination of these moving averages to the north shows this is the path with the least resistance.
The position of the Relative Strength Index (RSI) at 62 points to a strong price strength while also showing there is more room to the north before SOL is considered overbought. The Moving Average Convergence Divergence (MACD), positioned in positive territory, also supports the upside potential. Its movement above the signal line (orange band) suggests an incoming bullish cycle.
Increased buying pressure could see Solana price extend the gains past the $110.00 level. An extended climb could send SOL to the $120.00 psychological level, nearly 14% above current levels. In a highly bullish case, the L1 token could retake the range high of $126.36, levels last tested on Christmas day.
SOL/USDT 1-day chart
A rejection from the $104.92 resistance level could see Solana price drop to test the 25-day SMA at $97.24. A break and close below this level would invalidate the bullish thesis. This could send SOL lower to the 50-day SMA at $92.69.
In a dire case, Solana price would extend the fall to the 100-day SMA at $80.02, or worse, the $75.47 support floor.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.