Solana’s (SOL) price has recently experienced a significant price surge, driven by the Breakpoint conference hype. This momentum has triggered a rise in SOL’s price, bringing it closer to reaching a multi-month high.
As enthusiasm builds, the altcoin is facing a critical resistance level that it has struggled to overcome for the past four months.
Solana Has a Shot at Recovery
Traders are optimistic about Solana’s price rally, as reflected in the funding rate, which is currently at a multi-week high. This positive funding rate signals that SOL enthusiasts are confident in the asset’s potential to rally further. Long contracts are now overwhelmingly dominating short contracts, showing strong belief in the price movement.
This surge in market confidence is helping to support Solana’s upward trajectory. With traders leaning heavily toward long positions, SOL is benefiting from heightened bullish sentiment, which could propel the asset beyond its current resistance levels.
Read more: 11 Top Solana Meme Coins to Watch in August 2024
Additionally, Solana’s macro momentum also appears to be shifting in a bullish direction. The Moving Average Convergence Divergence (MACD) indicator recently posted its first bullish crossover in over 45 days, signaling that the extended period of bearishness could be ending. For over a month and a half, the cryptocurrency faced downward pressure, but this technical indicator now suggests a potential change in trend.
If the MACD continues to show strength, Solana’s price could rise further, pushing it past key resistance levels. This would mark a significant reversal of the bearish trend and indicate that the altcoin may be poised for sustained growth.
SOL Price Prediction: Minding the Barriers
Solana’s price has risen by 11.5% over the last three days, positioning the asset to test the $160 resistance level. This barrier has kept SOL from breaking out since August, but the recent price action suggests that Solana may have the momentum needed to breach it.
If the current bullishness continues, Solana could attempt to test the four-month resistance at $186. Although breaking through this level seems unlikely at the moment, SOL may still test it as resistance if market conditions remain favorable.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
However, Solana has failed to break through the $160 barrier multiple times, raising concerns that history may repeat itself. If SOL is unable to overcome this key resistance level, the bullish outlook will be invalidated, potentially leading to a decline in price toward $138.
Disclaimer
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