SolanaS Price Poised for Breakout as Key Resistance Turns to Support
Solana (SOL) is showing signs of a potential price surge. The token has transformed a significant resistance level into support, backed by growing interest from institutional investors.
Currently, Solana trades at $212.39,marking a 10.6% increase from its September low.This upward trend is supported by a multi-year cup and handle pattern on the weekly chart. the $204-206 range, previously a resistance, now acts as a support level.
Data from Nansen indicates that smart money is accumulating Solana. These accomplished institutional traders frequently enough influence retail investors, who tend to follow their lead. CoinGlass’s liquidity heatmap also shows a high density of short liquidations around $213-$219, hinting at a possible short squeeze if SOL rises further.
Investors are excited about the potential launch of a Solana ETF in the U.S. The SEC’s decision to streamline the crypto ETF review process has improved approval odds. An ETF could drive more institutional demand and boost market liquidity.
Technical indicators support a bullish outlook. The 20-day simple moving average is nearing a bullish crossover with the 50-day SMA. The RSI is at 50, indicating room for growth. The MACD line is approaching a positive crossover, signaling a shift in momentum.
If Solana holds the $204 support, it could rise towards $253, its September high.however, failing to hold this level could invalidate the bullish setup.
