Solana has surged 21% over the past seven days, pushing its price back above the $200 mark. This marks a significant recovery for the token, as it signals renewed investor confidence.
As bullish momentum builds across the market, technical indicators on the daily chart suggest that SOL is likely to maintain its position above this key price level.
New Buyers Fuel Solana Rally
Readings from SOL’s Relative Strength Index (RSI) on the daily chart confirm the likelihood of further price rallies. At press time, this stands at 67.97, pointing to additional room for growth.
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The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100. Values above 70 suggest that the asset is overbought and due for a price decline, while values under 30 indicate that the asset is oversold and may witness a rebound.
At 67.97, SOL’s RSI suggests the token still has room to grow, indicating that bullish momentum remains intact. The steadily rising RSI signals that buyers are increasingly confident, and can push SOL’s price higher before buyer exhaustion sets in.
Meanwhile, new demand for SOL has seen a notable uptick over the past 14 days. According to Glassnode, the number of new addresses participating in SOL transactions for the first time has surged by 51% since August 3.
SOL Number of New Addresses. Source: Glassnode
An increase in new demand like this suggests that fresh capital is entering this market, reflecting growing investor interest and confidence. This inflow of new participants can help sustain SOL price momentum and support further upward movement.
SOL Eyes $219 as Demand Strengthens Support Above $195
As of this writing, SOL trades at $207.17, comfortably above the support floor at $195.55. Rising demand may strengthen this key support level, which could help propel SOL toward the next resistance at $219.21.
SOL Price Analysis. Source: TradingView
However, an uptick in profit-taking could invalidate the bullish outlook. Should selling pressure intensify, SOL may retest the $195.55 support level, and a failure to hold it could see the coin retreat to $171.88.
