Leading cryptocurrency asset Solana (SOL) is demonstrating notable renewed price momentum as it aims to challenge several key resistance points. These crucial levels have proven vital for its next major rally to higher levels, possibly to a new all-time high in the upcoming weeks.
Price Breakout To Propel Solana’s Value
Amid rising market optimism, Negentropic, a technical expert has underlined Solana as a crucial crypto asset to monitor, predicting that SOL might be gearing up for a huge upswing to higher price levels. The market expert points to renewed bullish momentum and key resistance levels, which could position SOL for a major movement on the upside.
Following an examination of its price action, Negentropic highlighted that SOL dropped to the marked zone between $202 and $208 on the daily chart before rebounding toward $230 again. Should the altcoin surge past the $235 level in the 1-day time frame, the analyst expects SOL to break the price compression and aim for the previous high of $264.
Thus far, Negentropic has pointed out key signals to watch for in order to navigate the impending price surge. This includes the neutrality of the daily Relative Strength Index (RSI) and its distance from the overbought zone, which is favorable for a move to higher price points.
Furthermore, he has urged investors to watch potential ecosystem tokens like JUP and Dogwifhat (WIF) for upside momentum once SOL gains traction. With on-chain advancements and broader adoption of the Solana network, the altcoin may be impacted significantly by these developments, possibly establishing new price milestones in the near term.
Looking at the performance of cryptocurrencies following renewed bullish market sentiment, IC News, an informative platform claims that SOL was one of the few coins that hit a new all-time high in 2024. The token rose as high as $264 on November 22.
However, Solana underperformed amidst a significant rise in the altcoin market cap as the momentum could not be maintained, leading to a drop from the new peak. Meanwhile, the altcoin market cap increased by over 18%, and SOL’s price decreased by about 12%.
SOL Recovering From The Bearish Trend?
Wednesday was a rocky day for SOL after falling sharply close to the $200 price mark. This decline sparked uncertainty about its short-term potential for a rally. Nonetheless, the altcoin has rebounded strongly to $226, demonstrating its resiliency during periods of volatility.
Although Solana has recovered at a fast rate, investors’ optimism and confidence in SOL continue to falter, as evidenced by a decreasing trading volume. Over the past day, SOL’s market cap and trading volume have declined by more than 1% and 13%, respectively.
Featured image from iStock, chart from Tradingview.com