Sunny has recently shown impressive upward momentum, with the price steadily rising and now setting its sights on the $164 mark. As the cryptocurrency approaches this key resistance level, the focus shifts to whether this bullish trend will lead to a significant breakout or face resistance.
This article aims to provide a comprehensive technical analysis of Solana’s current price action, with a focus on its approach to the $164 resistance level. The goal is to assess whether the cryptocurrency’s bullish momentum can break through this key threshold, exploring possible scenarios for a major breakout or potential obstacles that could hinder further gains.
Over the past 24 hours, SOL’s price has increased by more than 5%, reaching around $154. During this period, the cryptocurrency’s market cap has surpassed $71 billion, and its trading volume has surpassed $2 billion. The market cap has increased by 5.85%, while the trading volume has increased by 96.25%, indicating a notable surge in market activity.
Analysis of Solana’s price development
Solana price is currently bullish and rising above the 100-day Simple Moving Average (SMA) on the 4-hour chart. This positive movement indicates strong upward momentum, suggesting that the bulls are in control and can drive the price towards the next key resistance level of $164.
The Relative Strength Index (RSI) indicator is also currently at 71%, indicating that SOL is in overbought territory. A persistent overbought condition signals strong buying pressure, suggesting that bullish pressure remains strong in the market.
On the daily chart, the price of SOL is showing a significant move as it is attempting to break above the 100-day SMA after a rejection at the $137 mark. This optimistic The rise reflects strong buying pressure and positive market sentiment, increasing the likelihood that the $164 target will be achievable soon.
Finally, the 1-day RSI indicates that SOL’s bullish momentum is strengthening, with the signal line recently crossing the 50% mark and currently standing at 54%. The upward movement in the RSI suggests increasing buying pressure and growing bullish sentiment for the asset.
Short-Term vs. Long-Term Outlook: What to Expect from SOL
If Solana can maintain its current bullish momentum to hit the $164 resistance level and close above it, it may continue to rise to challenge the $194 resistance level. On breaking this level, the digital asset may experience further price growth towards the $209 resistance level and possibly other levels above it.
Conversely, if SOL falls back to $164, it will start dropping again to $137. support level. After a break below this level, the crypto asset may see a further price decline to challenge the $118 support level and possibly other levels below it.
Main image from iStock, chart from Tradingview.com