SOL Targets $240 & $260. Can Bulls Break $209 Resistance First?

The crypto market has been battling lately, with various digital assets fighting for dominance. Among them, Solana (SOL) has emerged as a standout performer.  As per the latest market data, SOL is trading at $195.68, showcasing a 46.05% surge in value over the past month and a 2.28% increase in the last seven days. Despite a slight dip of 0.43% in the past 24 hours, the broader market sentiment remains bullish.

SOL Data Chart (CoinMarketCap)

With a market capitalization of over $87 billion, Solana currently ranks as the fourth-largest cryptocurrency in terms of market cap. Its 24-hour trading volume stands at over  $3.2 billion. Also, Solana's volume-to-market-cap ratio over the past 24 hours stands at a healthy 3.64%, indicating strong and healthy trading activity. The crypto's circulating supply is 444,709,642 SOL, with a total supply of 573,048,686 SOL. 

SOL Technical Analysis

On the weekly chart, the recent candlesticks have closed massively bullish, indicating a strong upward momentum. This bullish trend was further reinforced by the price finding support at an ascending trendline, followed by last week's candlestick closing in the green.

SOLUSD Price Chart (TradingView)

While the current week's candlestick has recorded a bearish momentum thus far, Solana is aiming to trade past the critical resistance level of $200-210. If the price manages to break through this resistance, analysts anticipate a rally towards the next targets of $240 and $260 in the near term. However, it's worth noting that the Relative Strength Index (RSI) is currently at an overbought reading of 76.41, suggesting that prices might retrace more to a lower time frame support before the potential continuation of the bull run, probably due to the support of the ranging channel seen in lower timeframes.

On the daily timeframe, Solana is on a second retest of the $200-$210 resistance zone, which it previously encountered on March 18, 2024, resulting in a rejection. After the initial rejection, the price has been trading within a ranging channel and it has now retested this crucial resistance zone once again.

SOLUSD 1- Day Chart (TradingView)

If Solana succeeds in breaking through the resistance, it could potentially surge to retest higher resistance levels at $240 and $260, respectively. On the other side, if the price continues to face a second rejection at the  level as we can see so far today, it may drop to test the ranging channel support around the $170 – $165 zone or the red ascending trendline support level below it

On the daily timeframe, the RSI stands at 63.76, indicating a moderately bullish sentiment. Meanwhile, on the 4-hour timeframe, the ranging channel resistance lies at the $200-$210 level, while immediate support is situated at the $170-$165 zone. Today, the price has tapped the resistance zone and has been trading bearishly in relation to that zone.