SOL is about to break through: the target of $140 is clear, and the callback will increase the position, and the subsequent impact may be $160!
The recent performance is quite impressive! Driven by the Fed's 50 basis point rate cut, the price of SOL rebounded rapidly from the low of $128, rising nearly 10%, and is about to break through the $140 mark. The goal is very clear.
Although the positive impact of the rate cut is within everyone's expectations, the dovish speech of Federal Reserve Chairman Powell has made market sentiment more optimistic. With Bitcoin leading the rise, the crypto market has generally strengthened, and the high correlation between SOL and Bitcoin (90-day rolling correlation index is 0.74) continues to drive the rise of the altcoin market.
From the perspective of technical analysis, $128 has always been the bottom of the triangle trend line. SOL has experienced multiple rounds of tests at this position but has never fallen below, indicating that this is not only a key support level, but also a key cyclical bottom. This rate cut is the time for SOL to take advantage of the momentum to break through, and players who are long from the bottom are now ready to make money! A pullback is an opportunity for you to add positions.
Brothers who haven't entered the market yet, don't be anxious. It's not too late to enter the market when there is a phased pullback. I mentioned on August 25 that SOL was in a rebound movement in the symmetrical triangle pattern. Although it was subsequently broken, the price is now gradually returning to the lower trend line of the triangle, which is around $140.
The futures market performed strongly, SOL's financing rate soared to a two-month high, and the open interest gradually increased, indicating that more and more futures traders began to go long. The last time the financing rate soared, SOL rose from $134 to $193! The increase was 43%. Whether this trend can be repeated this time, we will have to wait and see.
The support level is solid, and the support level of $128 is quite strong. Since April, SOL's daily line has never fallen below this level. Market conditions have become more favorable after the rate cut, and now bulls are closely watching the breakthrough opportunity of the $140 resistance level. If successful, SOL is expected to continue to rise, and the short-term target price is locked at $160, which is a 16% increase.
