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The fifth largest cryptocurrency by market cap, Solana (SOL), has once again come into the limelight since it saw a significant breakout in its price recently. The token rose by over 10% amid the Federal Reserve rate cuts, once again drawing the attention of investors and sparking discussions about its price breakout.
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Since Solana has reached the $151 mark after weeks of trading in the narrowed range of $130 to $139, analysts are now keeping an eye on what is going to come next. The fact that the recent rally by SOL already has many traders hoping that it might actually be sustainable leaves much to do. Indeed, the token had been stuck below the strong resistance levels of $140, trying to break them for a few days before the rally.
This policy change may have been exactly what Solana needed to break two-month declines and push for broader market adoption. Can Solana sustain this momentum or is the rally short-lived? Investors ponder their next moves as the market reacts to these developments.
As of the latest updates, SOL is currently trading at $148.56.
Technical Indicators And Breakout Potential
Currently, Solana’s technical indicators are strengthening considerably. Many experts believe that it should perform well in the coming days. Crypto analysts stated that SOL has shown reasonable toughness given its immense performance against most altcoins on higher timeframes.
Breakout Analysis
According to crypto analyst Yuriy, Solana is poised for a breakout to $150, but the bulls need to hold $138. If successful, the next targets are $160 and potentially $180-$200. He also cautioned, though, that key support remains at $138, and if that level succumbs, prices could easily fall back to $120.
Veteran trader Peter Brandt echoed similar sentiments, noting that $120 has long-term support. The altcoin has been consolidating in a rectangle pattern on the daily chart, and the price of $120 becomes the lower limit of the range since mid-April. Thus, holding this position could become a springboard for a “sizeable advance.”
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Solana: Bullish Market Sentiment
Market sentiment is cautiously optimistic around Solana as there’s a mix of both bullish and neutral indicators. At a neutral 54, the Fear & Greed Index displays a bit of caution among traders, though it is evident that Solana’s last few days have at least calmed jitters down a bit. Solana managed to spend 14 of its last 30 days in the green, which indicates its resilience well.
Meanwhile, price volatility in the token floats at 6.60%, thereby implying that even though changes are anticipated, the overall ascending trend seems to be good. Investors who were crossing their fingers and waiting for the perfect moment to enter the market may find this is the opportune time since Solana has been keeping significant momentum.
