Solana Price Prediction: Is a Breakthrough Above $120 Imminent?

10.01.2024

Solana price analysis shows a bullish trend for the SOL token, currently positioned above the crucial $100 mark, a significant support level for investors. Following a temporary decline, the market has seen a resurgence in buying activity, propelling SOL’s value. The latest trading value of Solana price is $101, witnessing an impressive surge of over 9% in the last day. December saw the price peak at $126, a climax of the year’s upward trajectory.

The past 24 hours have been particularly encouraging for SOL’s buyers, with a noticeable increase in daily trading volume reaching $3.93 billion. This uptrend suggests a growing bullish sentiment towards SOL, potentially leading to further price increases.

Source: Tradingview

Over the last week, the competitive smart contracts token fluctuated between $85 and $103, marking a weekly drop of 10%. Nonetheless, the current bullish momentum is fueling market optimism. Solana has solidified its place as the 5th largest cryptocurrency by market cap, now valued at $43 billion, following a 2% growth in the last day.

Technical Analysis and Resistance Levels to Watch

Cryptocurrency experts closely monitor Solana’s price dynamics as emerging patterns indicate a possible climb to the $120 mark. Renowned analyst Altcoin Sherpa has highlighted crucial resistance levels that could herald a significant bullish trend. A bull flag pattern on the hourly chart places the pivotal resistance level at $110. Overcoming this barrier could set SOL toward an ambitious $120 target.

$SOL: First buys here on #Solana filled. Still have more entries lower. I sold higher and rebought with the same amount of $, this is a good way to compound and accumulate more tokens. Still very bullish on this going into 2024. pic.twitter.com/kCLXx4dKtL

— Altcoin Sherpa (@AltcoinSherpa) January 8, 2024

Solana might witness a substantial price surge if it surpasses the $105 resistance zone and the subsequent significant hurdle resistance near $110. Should the bullish momentum persist above $120, a rally toward the $120 resistance is plausible. However, failure to breach the $110 resistance could trigger a decline. Initial support is found near the $95 mark. A downward breach and closure below $95 could lead to a steeper fall in the price of Solana.

Solana Indicators Point to Bullish Sentiment

The Moving Average Convergence Divergence (MACD) indicator is currently in a positive zone, with the MACD line above the signal line on the daily chart. The green histogram further affirms the bullish market sentiment, signifying increased buying pressure. The Awesome Oscillator stands at a positive $2.37, indicating a bullish trend.

SOL/USD daily price chart, Source: Tradingview

The Relative Strength Index (RSI) on the four-hour chart points to a bullish market with readings above 50. However, the RSI is nearing the overbought threshold of 70, which could signal a period of consolidation ahead. Both the 50-Smooth Moving Average and the 20-SMA are trending upwards on the daily chart, suggesting a short-term bullish outlook.