Solana (SOL) has been one of the top performing major cryptocurrencies this week, rallying 27% which makes it a top gainer among top20 coins.
SOL hit a high of $27 on Thursday, its highest level since July this year. The only other time SOL was above $27 in 2023 was in mid-July after a positive SEC ruling against Ripple. This latest surge marks a return to yearly highs for the token.
The rally comes after SOL broke out of a falling wedge pattern on the daily chart. This bullish breakout triggered a move towards the next target resistance zone between $25-30.
According to technical analysis, SOL’s trend has now inflected to an uptrend on both the short-term and medium-term timeframes. Momentum indicators like the MACD and RSI are also signaling bullish conditions, with the MACD line moving above the signal line and RSI surpassing 55.
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If SOL can break above the $27-30 zone, it could open the door for further upside towards the next resistance around $38. However, the token is now getting overbought after the latest surge, so a pullback or consolidation around $25-27 would also be likely.
SOL found support around the $22 level and 200-day moving average last week. This area around $22 could now act as a new floor and potential buy zone if SOL corrects lower.
Overall, SOL’s return to yearly highs and bullish technical picture indicates the medium-term trend is now up. If Bitcoin and the overall crypto market see continued strength, SOL looks poised to make a run back towards its all-time high around $60 in the coming weeks.
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