Solana prices have been doing very well lately, climbing over 20% in less than 24 hours.
What’s next for the digital currency after it experienced these compelling gains?
Several analysts weighed in, offering their take on this exact question.
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, offered his point of view via emailed comments.
“Solana is likely surging based on spillover from the general optimism surrounding this new crypto bull market,” he stated.
“People continue to speculate whether the technology can be a competitor to Ethereum, which has a market cap of about 7x the size of Solana,” Sifling added.
“Furthermore, it seems that a lot of projects that were built during the Solana bear market over the last few years are finally coming onto the market and generating further excitement,” he emphasized.
After providing this higher-level market view, Sifling commented on the cryptocurrency’s key levels of support and resistance.
“The prior high of $132 back in April of 2022 will be a key level to watch. I would expect more resistance at prior highs of $150 and $170 as well,” he stated.
“As for support, I would hope that Solana keeps above $75 and the psychologically important $100 level, which was the prior low earlier this month,” said Sifling.
William Noble, director of research and content development for Emerging Assets Group, also chimed in, identifying important price points.
“In SOL, there are two levels that stand out. The first is $131,” he stated.
“If SOL is above that level it can start to run to the level where the heavy selling started in 2021. That zone is $175-$180,” Noble noted.
The chart below depicts these levels:
Key technical levels for Solana’s SOL token.
William Noble
Joshua de Vos, research lead at CCData, also offered his two cents, diving deep into technical analysis.
“Since the end of the fourth quarter of 2023, Solana has been trading within a range between $120 and $80,” he stated.
“Recently, it has managed to break out of this range, with a significant move above $127, assuming it maintains its daily close above this level,” de Vos noted.
“Analysing the 4-hour chart, we see that the 50 EMA is above the 200 EMA, and both are beginning to trend upward, signalling a return of bullish momentum in the short to medium term,” he added.
“Further examination of additional technical indicators on the daily chart reveals a positive setup: the 50-day moving average (MA50) is above the 100-day (MA100) and the 200-day (MA200), the Supertrend indicator is signalling a continued uptrend, the price is above the MA50, the Moving Average Convergence Divergence (MACD) is above zero, and there has been a breakout above the upper Bollinger Band.”
“These factors collectively suggest a strong bullish momentum for Solana in the medium to long term,” de Vos concluded.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.