Solana is exhibiting strong bullish signs supported by moving averages, volume, and momentum indicators, which hint at a short-term pause or consolidation in the rally.
What Bulls Need To Watch To Sustain The Rally
In an X post, Gemxbt stated that the Solana 1-hour chart has displayed a bullish market structure, with the price trading above the 5, 10, and 20-day moving averages. The indication of short-term moving averages signals strong upward momentum, which shows that buyers are in control. The recent price action has been supported by notable volume spikes, confirming the strength behind the upward moves and adding credibility to the rally.
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The key resistance is around $154, where SOL has previously faced selling pressure. This zone will determine whether bullish momentum can push the price higher. On the downside, support is sitting near $150, which is acting as a cushion to absorb any immediate selling pressure and prevent a deeper pullback.
The Relative Strength Index (RSI) is approaching overbought territory, which may signal that the asset is due for a period of consolidation or sideways movement before continuing its climb. Meanwhile, the Moving Average Convergence Divergence (MACD) has recently shown a bullish crossover, reinforcing the uptrend and suggesting the upward momentum could continue if buying interest persists.
Crypto investor and trader Theodor Coin also revealed that the Solana 1-hour chart is showing a clear recovery after the dip seen in early July. The open interest is trending upward and has now surpassed $3.62 billion.
An increase here typically indicates growing trader market engagement, which is a precursor to heightened volatility and significant price moves. From here, a breakout above the $154 resistance could unleash a powerful rally fueled by the increasing market interest and positive momentum.
Uptrend Line Remains Intact — A Positive Sign
A crypto analyst known as Day on X also updated that Solana is holding above the long-term support area around $120 on the weekly chart, a level that has been a launchpad for rallies.
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The long-term uptrend line remains intact, and with each higher low, the case for a massive cup-and-handle pattern becomes stronger. However, this pattern won’t confirm until SOL breaks above the critical $250 resistance zone, a level that capped price action during the previous rally.
If SOL manages to break out above the $250 zone, it could unlock a measured move price target of $500, which marks a milestone in Solana’s recovery and expansion. The analyst also noted that SOL is not there yet, and that the first step for bulls is reclaiming $185 resistance level, which has consistently rejected upside attempts.
featured image from iStock images, chart from tradingview.com