Solana (SOL) has recently seen a notable resurgence, breaking past the $150 level for the first time since October 1, signaling a potential shift in its market trajectory. The token, which has been on a volatile path for the past few months, now appears to be recovering as renewed interest in the market and positive technical indicators point toward a potential bullish breakout.
Breaking Free from a 3-Month Resistance
SOL has faced resistance at key price points in recent months, failing to break through $185 in July and $160 in September. However, after a turbulent October, where it briefly dropped to $136.90, Solana has bounced back to $152.08, instilling hope among investors that the altcoin could finally escape the descending trendline that has kept it range-bound since July.
Supporting this optimism is the rising Open Interest (OI) in the derivative market, which has mirrored SOL’s price recovery. OI has returned to its October 1 peak of $1.89 billion, indicating increased market participation and confidence in Solana’s bullish momentum. Typically, a rising OI signals greater buying pressure, suggesting SOL could maintain its upward trajectory.
Bullish Indicators Point to $200 and Beyond
On the daily chart, Solana is eyeing a breakout above the $159.42 resistance, with technical indicators suggesting it could surpass $200 in the coming days. The Relative Strength Index (RSI) is climbing, indicating bullish momentum, and the Supertrend indicator has flashed a “buy” signal, reinforcing the likelihood of further gains. Should Solana push past the $159.42 and $178.64 resistance levels, analysts predict a 32% surge, pushing the price up to $201.55.
However, failure to break through these resistance points could see SOL tumble back to $128.36, making this a critical moment for the altcoin.
Approaching Key Resistance: Will $210 Be Solana’s Next Target?
Solana’s current position near the $148.16 resistance level is crucial. According to recent data, SOL is trading at $151.73, and if it successfully breaches the $148.16 mark, the token could be on a rally toward $210. This price point hasn’t been seen since March, and a break above it could signal a shift in market sentiment toward a more sustained bullish trend.
Technical indicators, including a Balance of Power (BoP) of 0.44 and an RSI reading of 53.93, suggest that buyers are gaining control, with enough room for further upward movement before hitting overbought conditions. If SOL can maintain this momentum, it could surpass $210 in the coming weeks. However, failure to break this resistance could send SOL back toward the $110 mark, making the current test crucial for Solana’s near-term prospects.
Meme Coins Drive On-Chain Activity and SOL Price Surge
In addition to these technical signals, a surge in the number of holders of Solana-based meme coins has provided further bullish momentum for SOL. Meme coins like Daddy Tate (DADDY), Mother Iggy (MOTHER), and Billy (BILLY) have seen a significant increase in holders over the past 30 days, alongside a rise in transactions and active addresses on the Solana blockchain.
On-chain metrics show a 7% increase in both transactions and active addresses, signaling heightened demand for Solana’s ecosystem. Analysts believe this rise in activity could push SOL’s price up by 12%, bringing it to the $169 resistance level, which corresponds to the August 2 high. Should Solana maintain its current upward trajectory, it may soon test the $210 mark, potentially marking a new bullish chapter for the altcoin.
Disclaimer: This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.