Solana’s Bullish Momentum
Solana’s price action on the four-hour timeframe indicates a potential bullish continuation, with buyers gearing up for another upward movement. In January, SOL experienced a substantial surge, reaching $126. However, a subdued sentiment in the crypto market triggered a significant retracement for the altcoin.
Despite the downturn, buyers found support at the $80 level. The latest bullish candle broke the bearish resistance at $90, presenting short-term buyers with a promising, low-risk buying opportunity as SOL seeks to regain its bullish momentum.
Strength at Key Support Level
After a notable price dip, SOL bears breached multiple support levels, forming a series of lower highs. However, the $80 support zone proved resilient, with buyers staging a strong rally on the four-hour timeframe.
This turnaround influenced a reversal in the Relative Strength Index (RSI), with selling pressure gradually giving way to buying pressure over a three-day period. As of the latest update, the RSI stands at 58, indicating a continued rise in buying pressure.
Similarly, the Moving Average Convergence Divergence (MACD) demonstrates buyers reinforcing the upward momentum, marked by a bullish crossover and green histogram bars above the zero level.
With the break of the $90 resistance, buying leverage has increased, providing an opportunity for new buyers to participate in the market reversal.
For short-term traders, entering a buy position at $91 with a profit target set at $100 offers a potential 11% return. However, the long-term extension of the price reversal hinges on bulls surpassing the $104 price level, considering previous unsuccessful attempts in January.
Solana Ecosystem Growth
On a broader scale, Solana’s ecosystem continues to expand, marked by the launch of 13 new token extensions. This development solidifies Solana’s position as the preferred blockchain for developers.