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The fifth-largest cryptocurrency by market cap, Solana (SOL), has been back in the spotlight since it recently saw a massive price surge. The token surged by over 10% amid the Fed’s interest rate cuts, catching investors’ attention once again and sparking all the talk about its price rally.
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since Solana Oil prices have reached $151 after weeks of trading in a tight range between $130 and $139, and analysts are now watching to see what happens next.
The fact that SOL’s recent surge has many traders hoping it is sustainable is a lot to work on. In fact, the coin has been stuck below the strong resistance levels at $140, trying to break it for a few days before rallying.
This policy shift may have been just what Solana needed to break the two-month slide and push for broader market adoption. Can Solana sustain this momentum or is this rally short-lived? Investors are now considering their next moves.
Technical indicators and breakout potential
At the moment, the technical indicators of Solana have strengthened significantly. Many experts believe that it will perform well in the coming days. Crypto analysts stated that SOL has shown reasonable resilience given its tremendous performance against most altcoins on higher timeframes.
Sol#Solana Gold is expected to rise to $150, but bulls need to hold on to $138.
If successful, the next targets are $160 and possibly $180 to $200.
A correction below $120 could lead to a drop towards $105. pic.twitter.com/C1PinLTlLQ
— Yuriy 🔶 BikoTrading | OrderFlow Trader (@Yuriy_Biko) September 19, 2024
Cryptocurrency analyst Yuri said that SOL has broken the 50-day simple moving average. The coin also passed a high level of resistance, which means a 7% increase for the day, while he expected SOL to break the levels at $160 with targets at $180 or even $200. He also warned that the main support remains at $138, and if this level surrenders, the price could easily drop to $120.
Attention all crypto geeks.
Looks like Sol Sol dollar US dollar Keep support at $120
This could become a rectangle capable of launching a major advance. pic.twitter.com/id0eTzzsVW– Peter Brandt (@PeterLBrandt) September 20, 2024
Peter Brandt, another veteran trader, echoed the sentiment when he said that the $120 level is a long-term support. The altcoin has been consolidating in a rectangle pattern on the daily chart, with $120 being the lower bound of the range since mid-April. Therefore, maintaining this position could be the starting point for a “significant advance.”
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Solana: Market sentiment is positive
Market sentiment is cautiously optimistic about Solana as there is Mix of bullish and neutral indicatorsAt a neutral level of 54, the Fear and Greed Index is showing some caution among traders, although it is easy to see that the past few days for Solana have calmed tensions at least a little. Solana has managed to spend 14 of the last 30 days in the green, which indicates its resilience quite well.
Meanwhile, the token’s price is fluctuating at 6.60%, which means that while changes are expected, the overall uptrend looks healthy. Investors who have been crossing their fingers and waiting for the perfect moment to enter the market may find this to be the right time as Solana has been maintaining significant momentum.
Featured image from BitGet, chart from TradingView