- Summary:
- Solana Price has been on the upward trajectory, but its performance this year shows that it could face resistance at a key barrier next week.
Solana price traded near seven-week highs on Saturday, hitting $172.13 after rising by 0.4 percent at the time of writing. SOL has been on a strong upside momentum in July, with its monthly gains standing at 15.6 percent so far. Furthermore, it has registered substantial gains in the last week rising by 21 percent- the largest gain by any crypto asset in the top 10. Solana’s performance this year has seen its ecosystem grow significantly, with its native meme coins like Dogwifhat (WIF), Bonk and Book of Meme (BOME) registering scintillating growth to build the strong upbeat sentiment around the Solana chain.
Momentum indicators
The Solana price action has been above the Bollinger Band signal line for the last week. In addition, it has recently broken above the upper band, underlining a strong buying momentum. The Relative Strength Index (RSI) also calls for further upside, as it reads 64 on the daily chart as of this writing.
Notably, Solana’s 50-MA crossed above the 200 MA back in late October 2023, and it has never crossed below that mark since that time. In addition, the current price is well above the 50-MA ($148.17) and the 100 MA ($150.44). These figures not only signal Solana’s strong buying momentum in the current crypto market upturn, but also points to its resilience to stay up above critical support levels.
A potential pathway to retesting Solana YTD highs
However, the current SOL price is still some way below the YTD high of $210, and a stronger momentum will be needed to hit that mark. On the double bottom pattern shown on the chart below, we can see that the near-term resistance will likely come at the $180 mark. A break above that mark could potentially clear the way for a move to retest YTD in the coming days. Meanwhile, the current price is well above the critical $125 support mark.
Daily Support and resistance levels
Solana price will likely continue on the upside if SOL stays above the $168.50 pivot mark. The first resistance will likely come at 170.70 mark, but extended control by the buyers could break above that mark and send SOL higher to test $182.00. Conversely, a move below 168.50 will favour the sellers to take control. In that case, the first support could come at $166.97, but extended control by the sellers could strengthen the downside momentum to breach that level and test $165.50. Also, such a momentum will invalidate the downside narrative.
