- Solana is looking to break above the $104.02 midpoint, indicating a possible climb towards the next critical level at $135.
- A rejection or drop below $80.84 would invalidate the uptrend, potentially taking Solana down to $64.18.
We note that SOL trades within a defined range between $80.84 and $127.21, and is now at a critical juncture, looking to break above a price that could mark the beginning of a new growth phase.
Since mid-December 2023, SOL has experienced a change in value, registering an increase of 58%.
This change marked the beginning of a period of consolidation, during which Solana’s price has fluctuated within the aforementioned range. The current situation suggests that SOL investors could be on the verge of a promising development.
A key aspect to watch is SOL position relative to the midpoint of its current range, located at $113.02. This level has been identified as a potential buy signal for investors, indicating that a successful advance beyond this point could lead Solana to reach and possibly surpass the next critical level at $135.70.
SOL’s recent recovery after touching the lower end of its range on January 22, and its subsequent stabilization above the midpoint, provides a favorable backdrop for anticipating future gains. This rebound reinforces the perception that SOL could be preparing to again challenge the upper end of its range at $127.21.
However, for investors to keep a constant watch on market behavior. A break above the $104.02 level would not only reaffirm SOL uptrend but also open the door to further upside opportunities .
On the other hand, any rejection at this level or a drop below the support at $80.84 could lead to a revision of investment expectations and strategies.
The correlation between Bitcoin’s performance and that of Layer 1 tokens such as Solana, Ethereum (ETH) and Avalanche (AVAX) are also part of this trend, being fundamental in this scenario to take into account. A positive environment in the Bitcoin market tends to favorably influence other cryptocurrencies, including SOL.
In addition, Solana’s Relative Strength Index (RSI) is showing signs of a possible rebound, which could be interpreted as an additional indicator of strength in its price.
The next few days will be decisive in determining the direction Solana’s price will take. SOL’s ability to maintain its momentum and break previously established barriers could signal the beginning of a sustained growth phase.
Solana’s price at the time of writing is trading at $113
