Solana has reclaimed the $200 support, raising investors’ hopes and strengthening the potential for a rally towards $245. The NUPL indicator and RSI above 50% are reinforcing investor confidence and bullish momentum.
The $201 support is critical; if lost, there is a risk of a drop to $186 or below, which could negatively impact bullish outlooks. Solana (SOL) is coming out of a period of sideways movement and reclaiming the $200 level as strong support after being stuck below this level for most of December.
A Hopeful Outlook for Investors
Solana’s Net Unrealized Profit/Loss (NUPL) indicator shows that despite the price fluctuations, investors remain confident that the altcoin will recover. Many investors are refraining from selling their holdings, which helps to prevent excessive downward pressure. This optimism supports the current uptrend and provides a solid foundation for further growth.
Investor confidence plays a critical role in sustaining recoveries. Market participants who hold their positions reduce supply-side pressure and contribute to the continuation of upward momentum. As a result, SOL may continue its upward movement with this positive atmosphere. Solana’s macro momentum is also gaining strength, with the Relative Strength Index (RSI) rising above 50.0. This movement indicates that upward momentum has resumed and price growth may continue. A sustained RSI above 50.0 generally indicates a favorable environment for upward movement.
Strong Uptrend Momentum and Targets
The renewed bullish momentum is expected to help Solana regain critical resistance levels. If this momentum continues, the SOL price could head higher. Technical indicators suggest that the altcoin is in a strong position to recover from its recent setbacks. Currently trading at $205, Solana is up 8.7% in the last 24 hours. This rise allowed SOL to break out of the $201 level and turn it into support. Maintaining this level will be important to sustain the ongoing recovery and target more gains.
Solana’s next target is to reclaim the critical hurdle of $221 as support as it heads towards the $245 level. If $245 can be reached, it will allow Solana to largely recoup its losses and strengthen its bullish outlook. Investor sentiment could also improve. However, a lack of momentum or profit-taking could see SOL lose the $201 support level. In this case, the altcoin could consolidate above the $186 level or drop below it, which could negatively impact bullish expectations.