25 February, 2024

Solana’s Price Momentum Gains Strength, Eyeing $140 Mark Amidst Market Rally

4 weeks ago

21 Feb, 2024

  • Analysts see a bullish future for Solana, with a possible ascent to $140, following a strong support base at $80.
  • Analyst Ali highlights Solana’s breakout from a descending channel, setting a potential target at $113.
  • Solana’s resilience in the market is evident, with a 20% value increase reinforcing a bullish sentiment among investors.

Solana’s recent market activities suggest a promising continuation of its upward trajectory. Following an initial surge, the digital currency experienced a consolidation phase, which now seems to have concluded. A key support level at $80 has held firm, indicating a potential rally toward the $140 mark, as noted by Michael van de Poppe, CEO of MN Trading.

Cryptocurrency analyst Ali also echoed a positive sentiment in a recent Twitter post, highlighting Solana’s breakout from a descending parallel channel. Maintaining Solana’s position above $94 could set the stage for an advance towards $113.

The cryptocurrency market, currently experiencing a relief rally, has seen Solana demonstrate remarkable resilience. It has sustained its value above the critical $80 level, leading to a significant 20% increase in its price over a mere week. Currently, Solana is trading at $96.72, marking a 1.22% rise in the last 24 hours.

Trading volumes for Solana have surged to $2.32 billion, a 53% increase, signaling a bullish trend in the market. Currently ranked 5th on CoinMarketCap, Solana boasts a live market cap of approximately $42 billion. With a circulating supply of 433 million SOL coins, the currency has shown significant strength, particularly over the weekend, when it surpassed the $95 support level.

If Solana can break through this resistance, it may surpass the $126 level. This scenario is supported by an analysis of the daily timeframe chart, which shows a potential completion of a bullish pattern, often seen at the tail end of major bear markets. This pattern indicates a possible major trend reversal for Solana.

SOL/USD daily price chart, Source: TradingView

The technical indicators for Solana are currently painting an optimistic picture. The daily Relative Strength Index (RSI) is hovering above the 50 mark, suggesting a shift towards bullish momentum. The Chaikin Money Flow (CMF) index is trending at 0.07, further supporting the bullish outlook. Additionally, positioning the 20 Exponential Moving Average (EMA) above the 50-EMA suggests the potential for further gains.