Solana’s native token SOL now finds itself battling critical resistance around the $100 mark. This psychological barrier has proven stubborn over recent days, leading to a consolidation between $94-$100. However, multiple signs point to an impending breakout that could propel SOL decidedly above this hurdle.
SOL price faces resistance at the $100 level but a breakout above this could signal renewed bullish momentum
Solana’s network growth in areas like active wallets and transaction volumes are driving investor confidence
Bitcoin’s recent consolidation adds uncertainty, but SOL retains underlying strengths like speed and low fees
Technical indicators like a bullish crossover on the MACD hint upside for SOL may be ahead (article 2)
Analyst Ali Martinez predicts SOL will break out from its descending channel and surge to $113 if it holds above $94
The network effects underpinning Solana continue swelling rapidly, evidenced by surging transaction volumes, active wallet growth, and booming DeFi activity. Investors have taken note, bidding up SOL over 85% in 2023 already amid a prolonged bear market elsewhere.
Yet sellers always emerge to pressure SOL downward upon tests of $100. Their distribution has formed a descending channel since SOL’s all-time highs. This demands SOL convincingly flip $100 into support to signal a directional trend change.
The good news? Multiple analysts spot signs of an impending reversal. Recently, the MACD indicator turned upward with a bullish crossover, reflecting building momentum. Ali Martinez also highlighted SOL’s potential break from its multi-month descending channel if prices overcome short-term resistance.
— Ali (@ali_charts) January 28, 2024
Martinez sees $94 as the pivotal level. A daily close above that target unlocks additional upside potential to $113 based on the previous channel’s upper trendline. Others share his constructive outlook on a SOL breakout fueling 25%+ gains.
Naturally, risks remain given SOL and crypto’s high volatility. The path of least resistance still points lower until Solomon proves otherwise. Bitcoin’s own consolidation muddies macro trends analysts use to gauge altcoin strength.
Yet Solana continues attracting praise for fundamentals like its speed, low costs, developer experience. These attributes substitute for weakness elsewhere, breeding long-term conviction during today’s struggles. Network incentives also recently upgraded, providing tailwinds.
Traders await Solana’s high-stakes battle with $100 resistance. The market’s reaction upon each test will set short-term expectations. Break and hold above it, however, and SOL may race upward to refresh its bullish credentials.
The post Solana Bull Case Strengthens: SOL Price $100 Hurdle Holds the Key for 25% Explosion appeared first on Blockonomi.