This article is also available in Spanish.
Solana has started the year with an impressive 12% rise, reaching the pivotal level of $210 and reigniting investor optimism. This rally comes as market sentiment shifts positively, fueling a broader altcoin resurgence. Now that Solana is gaining significant momentum, many are wondering if this marks the beginning of a massive rally for the high-performance blockchain.
Related reading
Top analyst Jelle recently shared a technical analysis on X, highlighting a critical development in Solana price action. According to Jelle, SOL has successfully broken a daily downtrend that originated after reaching its all-time high. This breakout is considered a bullish signal, suggesting that Solana may be preparing for a longer bullish move in the coming weeks.
The $210 mark is crucial for Solana as turning it into support could pave the way for a sustained rally. With altcoins showing strength across the board, investors will be closely watching Solana’s ability to capitalize on this momentum. As the new year progresses, the question remains: can Solana take advantage of this bullish start to reach new highs and solidify its position as a leading force in the cryptocurrency market?
Price Action Suggests Next Move
As the cryptocurrency market recovers from local lows, Solana is riding the wave with impressive momentum. The altcoin giant has continued to rise after maintaining a critical demand level above the $180 mark. This has sparked optimism among investors, who increasingly see Solana as a resilient and promising asset in the current market environment.
Top analyst Jelle recently shared a detailed technical analysis on Xhighlighting several bullish developments for Solana. According to Jelle, SOL has not only broken out of its prolonged downtrend but has also regained crucial monthly and weekly support levels. Additionally, Solana is now trading back above its 50-day exponential moving average (EMA), indicating a renewed bullish structure and increasing strength in price action.
These technical signals suggest that Solana is preparing for a significant move, which could take the price to new all-time highs. However, such a breakout will require strong market participation and favorable sentiment in the coming weeks to sustain the rally.
Related reading
For now, Solana’s performance is a testament to its resilience, positioning it as a top contender for those seeking growth opportunities in the altcoin market.
Solana Testing Technical Levels
The daily chart of Solana (SOL) is showing promising signs of strength after a strong bounce from the critical $175 level, which coincided perfectly with the 200-day EMA. This technical bounce has driven the price to a key supply zone at $210, an important milestone as SOL continues to rise.
For the bulls, the immediate target should be the $230 level. Reclaiming this area as support would likely trigger a quick and aggressive rally. Taking Solana into uncharted territory with new all-time highs. The confluence of technical indicators and the recent bullish momentum suggest that this scenario is achievable if the broader market continues to support the trend.
Related reading
However, time is of the essence. If Solana fails to reclaim the $230 mark in the coming weeks, momentum could weaken, leading to sideways consolidation. Such a consolidation phase could slow the pace, but it could also build a stronger foundation for the next breakout.
Featured image of Dall-E, TradingView chart
