Solana’s (SOL) Eyes $120: Bulls Charge Back After 12% Signal, But Can They Break the Dam?

Solana (SOL)

Solana (SOL) bulls are back on the charge, fueled by a potential buy signal and bullish technical indicators. Analyst Ali Martinez believes the Tom DeMark (TD) Sequential has signaled a trend reversal, potentially leading to a 12% price surge for SOL.

Exhausted Bears and Bullish Signals:

The TD Sequential suggests that selling pressure around $99 has subsided, paving the way for a bullish climb above $103. This aligns with the recent price movement, where SOL attempted to break through the $105 resistance. However, further gains hinge on bulls defending the support at $102.08 and overcoming resistance at $104.67.

Technical Indicators Flash Green (and Red): The Relative Strength Index (RSI) dipped below 50, indicating bearish influence. However, increased buying pressure could push it back up, potentially propelling SOL past the $108.07 resistance. This could trigger a 12% rise, landing SOL around $116.27.

Mixed Signals and the $120 Dream:

The Moving Average Convergence Divergence (MACD) paints a mixed picture. While in positive territory, the 12 EMA and 26 EMA remain negative, suggesting the bullish thesis needs validation. However, a crossover of the 12 EMA over the 26 EMA and signal line could confirm the uptrend and pave the way for $116.27.

The Money Flow Index (MFI) shows minimal capital inflow into SOL. If it rises towards 62.82, it could fuel a climb towards $120. However, consolidation between $102 and $108 seems more likely in the short term.

Also Read: Solana Supercharges Enterprise Adoption with Token Extension Standards

A Cautiously Optimistic Bounce: While $120 remains a possibility, a more realistic short-term scenario involves a bounce towards $105 if bulls can hold the $102 support. Increased buying pressure and positive technical confirmations are crucial for breaking through further resistance and reaching higher price targets.

Market Overview

As of February 25, 2024, the global crypto market cap sits at $45.25 billion, experiencing a slight 0.40% increase in the past 24 hours. Solana (SOL) is currently priced at $102.97, with a 24-hour trading volume of $1.24 billion.

Despite a recent dip, SOL has managed to climb 0.63% in the last day. With a circulating supply of 441.08 million coins, SOL holds the 5th position by market cap. Today’s price action saw a high of $104.65 and a low of $101.97. Could SOL be poised for further growth? Stay tuned for market updates.

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