The News Crypto -
- Solana’s price has broken out of a long-term downtrend channel, surging by 18% from the low-$80s.
- The launch of a decentralized exchange on Solana and bullish chart signals are driving optimism for SOL’s recovery.
- Despite the breakout, SOL is still below its 50-day moving average.
The Solana price notched an overdue bullish breakthrough this week, cracking a lengthy descending channel that contained its 2023 correction. The technical event is bolstering hopes that SOL’s painful crypto winter may be approaching its end.
SOL surged as much as 18% from the low-$80s zone after busting out of the channel structure in place since December’s swing peak. The move followed the decentralized exchange built on Solana that generated immediate trading volumes exceeding $250 million.
Solana appears ready to take on subsequent resistance levels as a result of the product launch and bullish chart signals, which will help it recover losses from its brutal 60% drawdown.
Analyst points to SOL hitting $150
Analyst Bluntz Captial points to SOL hitting the $150 mark on the heels of reclaiming support lost during last month’s support crack. The observer sees the pullback fully negated now that SOL trades constructively above its former breakdown points.
sol reclaimed breakdown range, move up to 150+ now basically confirmed. bears about to learn the true meaning of pain. $SOL pic.twitter.com/wJUsoIY18R— Bluntz (@Bluntz_Capital) January 27, 2024
Other experts also highlight the latest consolidation, giving way to upside continuation possibilities as buyers step back in with renewed conviction. SOL notching a higher support test around the $80 level set the stage for eventual liftoff.
“Looks likely we’ll be continuing towards $140,” said one crypto chartist tracking further upside objectives.
Still, SOL remains capped under its 50-day moving average, indicating sellers are still lurking after 10 difficult months for long-term holders. A daily close above that dynamic resistance would offer additional assurance that upside momentum can be sustained.
But with positive sentiment returning across crypto markets, technical tailwinds are increasing for Solana and other battered layer-1 protocols. The breakout will have to exhibit further follow-through before completely allaying fears, but it represents a constructive starting point.
This article was originally published on thenewscrypto.com
