The price of Solana (SOL) broke above the $100 mark once again today, as bulls look to sustain a move back into triple digit territory. SOL has touched this level a few times already in 2024 but has typically retreated back down to support in the $80-90 range.
However, this time could be different according to some technical signals that are now turning more positive. SOL is still down from its yearly high of around $115 set in early January 2024. But momentum is showing signs of a potential trend reversal.
The relative strength index (RSI) on the daily chart is now hovering in the 50-60 range. This positioning in the center of the scale represents neither overbought nor oversold conditions. It signals that upside momentum is beginning to build after the price consolidation of the past few months.
Similarly, the 200-day moving average (MA) sits at 47 – which is now over 100% less from the current price level. This signifies that the long term trend is still bullish for SOL. As long as it holds above this level, buyers retain control over the price action in the medium to long run.
Perhaps most promising is that SOL has now broken out of the descending channel it had been trading within since last December. This channel down formation represented the bearish price pressure after the early 2024 high. But breaking above the trendline resistance of this pattern implies the bearish trend may be exhausted.
If buyers can defend the breakout and push SOL higher in the coming sessions, the next logical target would be a re-test of $115 resistance and potentially new yearly highs. The technical signals are certainly suggestive that upside for SOL could be extended from current levels. Investors will be watching to see if bulls can back up the breakout and spark the next leg higher.
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