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Solana (SOL) Breaks Above Key Resistance
Solana (SOL) recently broke above a significant resistance level on Friday, amplifying the bullish sentiment that has been building over the past week. This development has led some analysts to believe that the fifth-largest cryptocurrency by market capitalization could be on the verge of a massive bull run, as the much-anticipated “Uptober” approaches.
Solana Retests $160 Resistance
Solana’s rally began last week, following a market surge driven by the US Federal Reserve’s rate cuts. This surge pushed the cryptocurrency’s price above the critical $140 resistance level, successfully turning it into support. Prior to this, SOL had struggled to break above this key level for the past month, remaining in a consolidation phase between the $130-$139 price range. This period of stagnation had alarmed many investors and market watchers, who feared that Solana was at risk of a significant correction.
Since the bullish catalyst, Solana has experienced a remarkable 23% surge, breaking past the $150 barrier earlier this week. Analysts have suggested that reclaiming this mark could propel the price toward the next key resistance level. On Friday, Solana broke above the crucial resistance level for the first time in a month, reaching $160 for the first time since late August. As of this writing, SOL has reached a daily high of $160.68, momentarily holding above this key level.
This impressive performance appears to be driven by the “bullish vibes” surrounding the early release from prison of Binance’s founder, Changpeng Zhao (CZ). The anticipation of his release has further inspired bullish market sentiment among investors, contributing to SOL’s 4% jump in an hour and pushing Bitcoin’s price to $66,000.
Is SOL Price About To “Go Insane”?
Analyst Crypto Horn Harris has noted Solana’s price action on the weekly chart, describing it as “nothing short of insane right now.” He highlighted that SOL has properly retested the Relative Strength Index (RSI) while executing a “perfect reset” of the 50-day Moving Average (MA).
According to the analyst, this performance suggests that Solana will challenge the cycle’s high above $200 and move to higher targets soon. Analyst WiseAnalyze has echoed this sentiment, claiming that SOL’s price “is still very low,” and suggesting that investors still have an opportunity to “jump on that trend.” The trader has set his target for the cycle’s final breakout at $400, although he acknowledged that it might grow even higher. However, he did not rule out the possibility of another rejection, with a potential pullback to the $108-$120 support zones.
Similarly, analyst Matthew Dixon has forecasted a retrace for Solana. He believes a pullback is imminent, as multiple indicators suggest a correction. However, the “jury is out on the scope of the decline.” Dixon has stated that SOL’s price targets will depend on whether “the price action from the low is in the form ABC or 123.” Regardless, he expects a retrace to be likely.
Solana’s Chart Analysis
Crypto analyst Byzantine General has described SOL’s chart as “pretty crazy.” The trader noted that Solana appears to be printing an Adam and Eve (A&E) double-bottom pattern, with the confirmation line around the $160 price range. Based on this pattern, Solana’s price “could go really nuts,” as it has the potential for a breakout toward the $200 resistance level if it successfully reclaims the key support level.
In conclusion, Solana’s recent performance and breaking of key resistance levels have reignited bullish market sentiments. While some analysts predict a massive bull run, others remain cautious, highlighting the possibility of a retrace. Investors will need to stay vigilant and closely monitor the market to make informed decisions.
