Solana broke its multi-month downtrend early, reaching a key resistance level at $202 before the weekly close.
A weekly close above $202 could signal a bullish reversal and set the stage for a larger rally in Solana’s price.
Traders are closely watching Solana’s position at $202, as it could drive further interest and upward momentum if sustained.
Solana has also posted a nice bounce up breaking from a long-term channel and testing the $202 level before the weekly close. This price action has attracted the attention of traders and investors who are looking for signs of a reversal in the asset and can lead to a new rally in the event that it manages to cling to the $ 202 per week.
Breaking Through Resistance Ahead of Schedule
In the last few weeks, Solana’s price has been accumulating upwards momentum since it hit the area near $202. The asset was able to breakout to this level following an early attempt, rather than waiting for the normal weekly close. This is an indication of a very high level of bullish sentiment prevailing in various market participants.
Thus ,this we perceive to be an indication of an increasing optimism on the asset’s ability to trade beyond the trading range that has been bound in the past. The $202 level has been a focal resistance level among traders and the early breakout of Solana points toward changing of the tides in favor of bulls.
Multi-Month Downtrend Reversal
This latest price action is particularly interesting as it puts a cap to the multi-month trending downwards price movement that Solana, in particular, has been going through. Basically over the last several months, the charts show that the price of this asset has been largely capped with numerous attempts to move past the upper limit failing.
https://twitter.com/rektcapital/status/1854877892041179190
Nonetheless, this recent bar has seen Solana flip its price above the downtrend line that has been reigning for a long time thus opening up a new frontier. More trading could ensue and help drive the breakout higher, if more interest followed to join in the buying frenzy.
If Solana stays above $202 and gets a weekly close above it, opinions are that it starts a bigger upward move with targets of $200+ set. Such a move would mark a very firm bullish signal and more interest in the asset can be expected as it begins to move forward. The intraday resistance of the Solana at $34 could attract the reader's attention in the near future.
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