Solana (SOL) price may have reached a bottom near $100, which would open the way for a rally to $260. The crypto’s technical charts and on-chain data are both supportive of a rally, but there are a few major resistance hurdles that need to be cleared first. Trading at $102.31 at the time of writing, SOL is ready to make the most of its sturdy support.
Technical Analysis
After a 25% correction from $127 to $100, SOL’s price chart on the 4-hour timeframe shows a possibility of the V-shaped recovery pattern. The relative strength index (RSI) has moved up to 36 from the oversold area, which reflects the upward force.
The main resistance areas are the $113, $115 supply band, $125, $130 range, and the 50-week moving average levels at $140, $160. Breaking out of these levels could see SOL going up to $150, or 44% higher than the current market price.
Also Read: Solana Drops 11% as Elliott Wave Sell-Off Targets $96 Support
On-chain Demand
Solana’s total value locked (TVL) has increased to an all-time high of 73.4 million SOL, making up a value of $7.5 billion, on the back of network activity and decentralized application (DApp) usage.
Daily transactions soared to a two-year high of 109.5 million, while daily DEX volume touched an eight-month peak of $51.3 million SOL. These figures are indicative of rising on-chain demand and possible bullish sentiment.
Also Read: 21Shares Launches JSOL ETP to Expand Solana Staking Access in EU
Challenges and Outlook
First and foremost, SOL needs to break through significant resistance levels if it wants to hit $260, a 150% gain from the present levels. According to Trader Tardigrade, a bounce off the lower boundary of the descending channel could send SOL soaring to $215.
The 50-week moving averages ranging from $140 to $160 have always been the stumbling block to price rallies, and failing to climb above this area could mean a return to the support levels.
Also Read: Solana (SOL) Stabilizes Above $119-$124 Support as Market Eyes Potential Rebound
