SOL's price broke above a key resistance level, reigniting the bullish sentiment among investors and traders who believe the cryptocurrency is soon poised to reclaim higher targets.
Solana (SOL) price soared over 10% on Thursday as the token finally breached a key resistance level. The price surge follows the US Federal Reserve’s (Fed) widely anticipated rate cuts, which saw the crypto market experience a 5% rebound in the past 24 hours.
Most cryptocurrencies experienced gains in the past day, recovering from their lackluster performance over the past few weeks. Among the top 100, only a handful of tokens registered losses, including NEAR Protocol (NEAR), Polygon (MATIC), and Filecoin (FIL).
Solana, the fifth-largest cryptocurrency by market capitalization, regained momentum on Thursday after reclaiming a key level. The token had failed to break about the $140 resistance level throughout September, consolidating between the $130-$139 price range in the last few weeks.
The token’s failure to move past this resistance had traders speculating whether SOL could experience a deeper correction. Seasoned trader Peter Brandt suggested that the cryptocurrency could face a significant correction to the $80 support zone if it unsuccessfully continued retesting this resistance level.
However, SOL’s price recovered from its disappointing performance, jumping over 10% in the last 24 hours. The cryptocurrency moved past the $140 mark on Thursday morning, breaking out of a two-month downtrend.
The price surge represented a 5.4% and 8.3% increase in the weekly and biweekly timeframes. Additionally, its daily market activity soared 81.3% in the past day, with a daily trading volume of $3.76 billion.
Solana’s price now positions itself to aim for higher targets, as highlighted by several crypto analysts. Among them, Jelle stated that in the higher timeframes, Solana has performed considerably better than most altcoins.
Other market watchers previously noted Solana’s strength since Q3 started. During the market retraces, the cryptocurrency was deemed “one of the strongest assets” after moving sideways while other tokens made new lows.
Jelle highlighted that SOL’s price still held “all key support levels even though most altcoins are down >50% from the highs.” Effectively, Solana has remained above the $120 support zone since March, currently being 31% down from March’s highs.
Similarly, crypto analyst Yuriy considers SOL’s recent performance has set the stage for a breakout above the $150 resistance level. However, he warned that bulls must hold the $138 mark, as failing to maintain this support could lead to a correction to the $120 level.
The analyst believes a successful breakout will send SOL’s price to the $160 resistance zone next, potentially moving toward the $180-200 targets. As of this writing, SOL is trading at $143.3, a 12.2% increase in the last 24 hours.
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