Solana Soars: $100 Reclaimed with a 25% Surge on the Horizon

Jonathan Stoker Feb 03, 2024, 03:50am 328 views

Solana Soars: $100 Reclaimed with a 25% Surge on the Horizon

Solana (SOL) Reclaims Noteworthy $100 Mark

In recent events, SolanaSolana$104 5.03% (SOL) has experienced a rally of over 5.5% trading at $100, once again claiming the psychologically significant $100 point. This progress seems to be fueled by increasing optimism that the improved technical alignment of SOL could potentially pave the way for more substantial future gains. The question that remains is, how far could Solana's next bullish surge extend?

SOL Capitalizes on General Altcoin Strength

So far in 2024, SOL has been proactively benefiting from the overall strength of altcoins. This follows the pattern of BitcoinBitcoin$42,260 -0.64% and EthereumEthereum$2,315 -2.42%, which have been steadily recouping gains from the general lows of the crypto market. Specifically, for SOL, market analysts at TradingView have highlighted the emergence of a classic morning star pattern near the support levels. This pattern is usually indicative of bullish trend reversals.

SOL Elevates Above Short-Term Descending Resistance Trendline

Furthermore, SOL has successfully ascended above the short-term declining resistance trendline. This sets the stage for a retest of this breakout level to verify it as new support. With SOL increasingly likely to reclaim the $100 mark, there is ongoing debate among analysts as to how much further upside could potentially unfold.

Potential for SOL to Reach $125?

Some market researchers have been speculating about SOL potentially revisiting the formidable resistance around $125. This is, however, contingent on the quantified momentum shifting decisively in favor of buyers through February along with the broader risk-on revival across digital assets. Nonetheless, some more forward-thinking analysts are not dismissing the possibility of an attack on SOL's record close to $260 or even $1000, based on past parabolic performances.

Understanding SOL's Inherent Volatility

It's important to note, however, that history has shown SOL's propensity for volatility, and that sustained rallies of triple- or quadruple-digit percentages are unsustainable. In the event that bulls lose control, SOL faces the risk of severe rejections, particularly if the support level of $80 cracks. This could lead to losses snowballing towards the low $50s, a devastating bear market zone that has previously triggered capitulation during the harshest SOL pullbacks.

Momentum Shifts Towards Additional Upside Potential

For the time being, positive momentum has traders emphasizing potential upside rather than downside risks. If SOL continues to maintain the ground it has recently regained above its 50-day moving average and establishes a higher price base through February, analysts may become more receptive to forecasts predicting a rerun towards record heights at some point this cycle.

Edited by Jonathan Stoker

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