5 October 2023
Solana (SOL) kicked off the month with a remarkable price surge, surging by more than 10% and decisively breaking through the local resistance level of $22. This substantial move has left traders and investors wondering if SOL has what it takes to sustain this bullish momentum and embark on a sustained recovery.
The breakout from the $22 resistance, bolstered by a notable increase in trading volume, suggests a heightened level of confidence among buyers. It’s a clear signal that they are poised for further gains, but the question that looms large is whether this momentum is robust enough to support a prolonged upward trajectory for SOL.
As SOL’s price demonstrates its ability to maintain levels above the $22 mark, a price analysis is eyeing an 11% potential gain, which could see the cryptocurrency challenging the $25 threshold. However, a broader perspective reveals that the ongoing recovery in SOL’s price is well within the confines of a channel pattern.
Solana’s Strong Start: Breaking The Resistance Barrier
The ascending trajectory of SOL’s price is expected to follow the upper trend line of this channel pattern. A breakout from either of these trendlines could serve as a catalyst for a directional rally, potentially amplifying the ongoing surge.
However, the resurgence in supply pressure, coupled with Bitcoin’s recent reversion from the $28,000 level, has introduced a level of uncertainty into SOL’s price action. Analysis emphasizes that this intensified supply pressure materialized around the $24 mark, leading to a minor pullback. This pullback is seen as a valuable opportunity to assess the support strength of the recently breached level.
At the time of writing, SOL is trading at approximately $23 on CoinGecko, reflecting a marginal 0.3% decline over the past 24 hours. However, the cryptocurrency has witnessed an impressive 20.5% surge over the past seven days.
The recent price surge has propelled Solana into the limelight, catapulting it to the position of the 8th largest cryptocurrency by market capitalization. In this remarkable ascent, SOL has overtaken popular cryptocurrencies such as Cardano (ADA) and Dogecoin (DOGE).
Charting SOL’s Course
This past week has been especially robust for SOL, marking its strongest performance since mid-July and recording a staggering 38% increase from its September low. However, it’s worth noting that these figures remain a considerable distance from the peak levels seen during the bull market.
As the price of SOL experiences fluctuations, the cryptocurrency faces key resistance levels at $25 and $28. If bullish sentiment persists, the path to $30, the high reached in July, appears open. On the flip side, SOL enjoys support at $22 and $20 in case bears take control.
Solana continues to shine as it surges up the market cap rankings. The coming days will reveal whether the cryptocurrency can sustain its momentum and potentially reach new heights or if it will encounter resistance along the way.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock