Solana (SOL) recently broke out of a period of sideways momentum, reclaiming $200 as support after being stuck below this level for much of December.
This bullish move has reignited investor optimism, suggesting that SOL could continue its recovery toward higher price targets.
Solana Investors Are Hopeful
The Net Unrealized Profit/Loss (NUPL) indicator for Solana shows that despite the recent price volatility, investors remain confident in the altcoin’s recovery. Many are refraining from selling their holdings, which is helping prevent excessive downward pressure. This optimism supports the current uptrend, offering a foundation for further growth.
Such investor confidence often plays a critical role in sustaining recoveries. By holding their positions, market participants contribute to reducing supply-side pressure, making it easier for bullish momentum to take hold. As a result, SOL is well-positioned to capitalize on this sentiment and continue its upward trajectory.
Solana’s macro momentum is also gaining strength, with the Relative Strength Index (RSI) climbing back above the neutral 50.0 level. This movement signals that bullish momentum is returning, potentially paving the way for further price increases. A sustained RSI above 50.0 typically indicates a favorable environment for upward movement.
The renewed bullish strength is expected to help Solana reclaim critical resistance levels. Should this momentum persist, SOL could continue to rally and reach higher price milestones. Technical indicators suggest that the altcoin is in a strong position to recover from its recent setbacks.
SOL Price Prediction: Recovery Restarts
Solana is currently trading at $205, up 8.7% over the last 24 hours. This surge has allowed SOL to breach and flip the $201 resistance into support. Holding this level will be crucial for sustaining the ongoing recovery and targeting further gains.
The next goal for SOL is to reclaim $221 as support, a critical barrier standing between the altcoin and its target of $245. Successfully reaching $245 would enable Solana to recover most of its recent losses, reinforcing its bullish outlook and boosting investor sentiment.
However, a lack of sustained momentum or profit-taking could cause SOL to lose the $201 support level. If this happens, the altcoin could consolidate above $186 or even fall through it, invalidating the bullish thesis entirely.
Disclaimer
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