Solana Breaks Above Daily Downtrend – Analyst Expects New ATH Soon
Solana kicked off the year with an impressive 12% gain, reaching the key $210 level and reigniting investor optimism. The rally comes amid a positive shift in market sentiment, fueling a broader recovery in altcoins. With Solana now gaining huge traction, many are asking whether this marks the beginning of a massive backlash for high-performance blockchains.
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Top analyst Jelle recently shared a technical analysis of X, highlighting key developments in Solana’s price action. According to Jelle, SOL has managed to break the daily downtrend it formed after hitting all-time highs. This breakout is seen as a bullish sign, suggesting that Solana may be setting up for a longer rally in the coming weeks.
The $210 mark is critical for Solanaas turning it into support could pave the way for a sustained rebound. With altcoins showing strength across the board, investors will be keeping a close eye on Solana’s ability to capitalize on this momentum. As the new year dawns, the question remains: Can Solana capitalize on this bullish start to reach new highs and solidify its position as a dominant force in the cryptocurrency market?
Price action indicates impending action
As the cryptocurrency market rebounds from local lows, Solana is riding the wave with impressive momentum. The altcoin giant continues to rise after holding key demand levels above the $180 mark. This has fueled optimism among investors, who increasingly view Solana as a resilient and promising asset in the current market environment.
Top Analyst Jelle Recently Shared detailed technical analysis on Xhighlighted several bullish developments for Solana. Jelle said SOL not only broke out of a long-term downtrend but also reclaimed key monthly and weekly support levels. Additionally, Solana is currently trading back above the 50-day exponential moving average (EMA), indicating a renewed bullish structure and strengthening price action.
These technical signals suggest Solana is preparing to make a major move that could push the price to new all-time highs. However, such a breakout will require strong market participation and good sentiment in the coming weeks to sustain the rally.
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Currently, Solana’s performance has proven its resilience, making it a top contender for those looking for growth opportunities in the altcoin market.
Solana tests technical proficiency
The daily chart for Solana (SOL) shows strong signs of strength after a sharp rebound from the key $175 level, which coincides perfectly with the 200-day EMA. This technical rebound pushed the price into the key supply area of $210, an important milestone for SOL to continue higher.
For bulls, the near-term target must be the $230 level. Reclaiming this area as support could trigger a quick and aggressive rebound. Pushing Solana into uncharted territory and hitting all-time highs. A combination of technical indicators and recent bullish momentum suggests this scenario is within reach if the broader market continues to support this trend.
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However, time is of the essence. If Solana fails to regain the $230 mark in the coming weeks, momentum may weaken, leading to sideways consolidation. Such a consolidation phase may slow down the pace, but it may also create a stronger foundation for the next breakout.
Featured image from Dall-E, chart from TradingView
