Solana (SOL) has been showing impressive bullish momentum recently, with its price steadily rising and now heading towards the $164 mark. As Solana’s native token approaches this important resistance level, the question is whether the uptrend will lead to a significant breakout or face resistance?
This article will provide a comprehensive technical analysis of Solana’s current price action, focusing on its approach to the $164 resistance level. The goal is to assess whether the bullish momentum can push it above this important level, exploring potential breakout scenarios or obstacles that could hinder further gains.
Over the past 24 hours, the price of SOL increased by more than 3.6%, reaching around $158. During this period, the market capitalization of SOL exceeded $74 billion and the trading volume exceeded $2.6 billion. The market capitalization increased by 3.4%, while the trading volume jumped by 96.25%, showing a significant increase in market activity.
SOL Price Performance Analysis
SOL price is currently rising above the 100-day Simple Moving Average (SMA) on the 4-hour chart. This positive move signals strong bullish momentum, implying that bulls are in control and could push the price towards the next key resistance level at $164.
SOL shows strong bullish momentum | Source: Tradingview
In addition, the Relative Strength Index (RSI) indicator is currently at 71%, indicating that SOL is in overbought territory. The prolonged overbought condition signals strong buying pressure, indicating that bullish pressure is still strong in the market.
On the daily chart, SOL price is showing significant volatility as it attempts to surpass the 100-day SMA after being rejected at $137. This rally reflects strong buying pressure and positive market sentiment, increasing the likelihood that the $164 target could be reached soon.
SOL Price Targets $164 | Source: Tradingview
Finally, the 1-day RSI shows that the bullish momentum of SOL is strengthening, as the signal line recently crossed the 50% mark and is currently at 54%. The upward movement of the RSI represents increasing buying pressure and increasing bullish sentiment towards the asset.
Short-term vs. long-term outlook: What to expect from SOL?
If Solana can sustain the current bullish momentum to reach the $164 resistance and close above it, the price could continue to rise to challenge the $194 resistance. Once this level is broken, the price will increase further towards the $209 resistance and possibly higher levels.
Conversely, if SOL slides back below $164, the price will start to decline once again towards the $137 support. After breaking this level, the price could continue its downward move, challenging the $118 support and even other lower levels.
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