Solana (SOL) Bulls Eye $190: Breakout Imminent?
Solana's Bullish Momentum Builds
Solana (SOL) has experienced a surge in price, gaining 10% over the past week amid a broader recovery in the cryptocurrency market. This renewed optimism has fueled upward momentum, suggesting a sustained rally for SOL.
Technical Analysis Points to Continued Gains
The recent double-digit rally has pushed SOL's price within an ascending parallel channel on the daily chart. This pattern, characterized by higher highs and higher lows between upward-sloping trendlines, typically indicates a strong uptrend.
Key Indicators:
- Ascending Parallel Channel: The lower boundary acts as support, the upper as resistance around $186.52.
- Relative Strength Index (RSI): Currently at 57.63, suggesting continued buying pressure without being overbought.
- Elder-Ray Index: A positive value of 11.71 signals that buyers are gaining control, reinforcing the bullish outlook.
The Relative Strength Index (RSI) confirms the presence of buy-side pressure. An RSI above 70 usually indicates an overbought condition and potential price decline, while values below 30 suggest an oversold condition and potential rebound. SOL's current RSI implies continued accumulation.
The Elder-Ray Index, which measures the balance between buying and selling power, has turned positive after a nine-day negative streak. This shift further supports the possibility of an extended rally if buyer interest remains strong.
$186 Resistance: The Next Hurdle
As of now, SOL is trading around $181.82, just below the resistance level at $186.52, which marks the upper boundary of the ascending parallel channel.
A surge in buying pressure could propel the token past this resistance and toward the psychologically significant $190 mark.
However, a return of selling pressure could see SOL retrace towards the support level at $176.64.