Leading cryptocurrency assets Solana (SUN) is showing notable renewed price momentum as it looks to challenge some key resistance points. These crucial levels have proven vital for the next big rally to higher levels, possibly to a new all-time high in the coming weeks.
Price breakout to increase Solana’s value
Amid rising market optimism, Negentropic, a tech expert, has done just that underlined Solana as a crucial crypto asset to watch, predicting that SOL may be gearing up for a huge rebound to higher price levels. The market expert points to renewed bullish momentum and key resistance levels, which could position SOL for a major upside move.
After examining the price action, Negentropic highlighted that the SOL fell to the highlighted zone between $202 and $208 on the daily chart, before bouncing back towards $230. Should the altcoin Rising past the $235 level in the space of one day, the analyst expects SOL to break the price compression and aim for the previous high of $264.
So far, Negentropic has indicated important signals that we should pay attention to in order to cope with the impending price increase. This includes the neutrality of the daily Relative Strength Index (RSI) and its distance from the overbought zone, which favors a move higher.
Additionally, he urged investors to keep an eye on potential ecosystem tokens such as JUP and Dogwifhat (WIF) for upside momentum once SOL gains momentum. With improvements in the chain and broader acceptance of the Solana Networkthe altcoin could be significantly affected by these developments, potentially reaching new price milestones in the short term.
Looking at the performance of cryptocurrencies after renewed bullish market sentimentIC News, an informative platform claims that SOL was one of the few coins to reach a new all-time high in 2024. The token rose to $264 on November 22.
However, Solana underperformed amid a significant rise in interest rates altcoin market upper limit as momentum could not be maintained, leading to a decline from the new peak. Meanwhile, the market capitalization of altcoins rose by over 18% and the price of SOL fell by around 12%.
SOL recovering from the bearish trend?
Wednesday was a difficult day for that SOL after a sharp decline close to the $200 price. This decline led to uncertainty about the short-term potential for a rally. Nevertheless, the altcoin has rebounded strongly to $226, demonstrating its resilience during periods of volatility.
Although Solana has recovered quickly, investor optimism and confidence in SOL continue to waver, as evidenced by declining trading volume. Over the past day, SOL’s market capitalization and trading volume have fallen by more than 1% and 13%, respectively.
Featured image from iStock, chart from Tradingview.com