Does History Favor Solana's Next Move at $163?
Market buzz returns as Solana (SOL) approaches $163, a crucial resistance level. After a 31% spike since September 6, the cryptocurrency faces this crucial barrier again.
The $163 threshold has historically been a problem, typically triggers price declines. Current market attitude and October's favorable cryptocurrency circumstances might break the trend this time.
Market Recovering
The larger cryptocurrency market is strengthening. CoinMarketCap reports a 0.48% increase in the worldwide market cap to $2.31 trillion, indicating investor confidence.
Bitcoin has risen beyond $65k and Ethereum above $2.7k after this rebound. At publication time, Solana was $157.18, up 0.78% from the day before.
Renewed Interest Drives Rally
Solana held between $120 and $125 throughout September, providing support amid downturns. SOL was poised for a breakthrough as buyers defended key levels throughout this accumulating session. Due to large trading volumes and fresh interest, the coin broke a major downtrend line that had held it back since March's $205 top.
On September 26, breaking this line boosted buyer confidence. The macroeconomic environment also matters, with central banks globally adopting more liberal monetary policies. Such circumstances have favored riskier investments like bitcoins.
Will SOL Break $163?
As SOL approaches $163 resistance, a breakthrough is possible. Market indicators indicate bullishness. The relative strength indicator is comfortably at 63.38, indicating potential for increase before the token becomes overbought. The MACD line also signals more higher action, indicating the Bitcoin might break the barrier level and reach $194, last touched in July.
However, $163 may remain difficult. Solana may retrace to $146.04, the 50.5 Fibonacci level, if it fails to break through. A drop to this level might bring buyers back, sending the price higher. SOL may test $125.60 before rallying after a further plunge.
