Solana has started the year with an impressive 12% gain, reaching the key level of $210, rekindling investor optimism. This surge occurs when market sentiment shifts positively, fueling a resurgence in altcoins. With Solana now gaining significant traction, many are questioning whether this is the start of a massive rally for the high-performance blockchain.
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Top analyst Jelle recently shared a technical analysis on X that highlights an important development in Solana's price action. According to Jelle, SOL successfully broke the daily downtrend that had formed after reaching its high. The break is seen as a bullish signal that Solana may be poised for a longer rally in the coming weeks.
$210 is very important to Solanabecause turning it into support can pave the way for a sustainable rally. With the strength of altcoins showing across the board, investors will get a first-hand look at Solana's ability to capitalize on this momentum. As the new year begins, the question remains: Can Solana use this bullish start to reach new heights and cement its position as a leading force in the cryptocurrency market?
Price action suggests a future move
As the crypto market recovers from local lows, Solana is riding this wave with impressive momentum. The altcoin giant has continued to grow after holding the critical demand level above $180. This has created optimism among investors, who increasingly see Solana as a resilient and promising asset in the current market environment.
Jelle's top analyst recently Share detailed technical analysis on Xhighlights several upside developments for Solana. According to Jelle, SOL has not only broken out of its long downtrend, but has also retook important monthly and weekly support levels. Additionally, Solana is now trading above its 50-day exponential moving average (EMA), indicating a new bullish structure and growing strength in its price action.
These technical signals indicate that Solana is preparing for a significant move, potentially pushing the price to new record highs. However, such a breakout would require strong market participation and favorable sentiment in the coming weeks to sustain the rally.
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So far, Solana's performance is a testament to its resilience, positioning it as a top contender for those looking for growth opportunities in the altcoin market.
Solana test technical levels
The daily chart of Solana (SOL) is showing promising signs of strength after a sharp bounce from the critical $175 level, which coincided perfectly with the 200-day EMA. This technical bounce has pushed the price into a key supply zone at $210, an important turning point as SOL continues to rise.
For the bulls, the immediate target should be the $230 level. Retaking this area as support is likely to trigger a quick and aggressive rally. Driving Solana into uncharted territory with new highs. The confluence of technical indicators and the recent bullish move suggests that this scenario is achievable if the broader market continues to support the trend.
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However, time is of the essence. If Solana fails to recapture $230 in the coming weeks, momentum may weaken and lead to a sideways consolidation. Such a consolidation phase may slow down the momentum, but it can also create a stronger foundation for the next breakout.
Featured image from Dall-E, chart from TradingView
