Key takeaways
- Solana is the best performer among the top 10 cryptocurrencies by market cap, up 7% in the last 24 hours.
- The coin could rally towards $300 soon after breaking out above $200.
SOL leads market charge
The cryptocurrency market rallied over the weekend but has underperformed over the last 24 hours. BTC and ETH are down by less than 1% respectively, while XRP has also stagnated after hitting the $3.6 high a few days ago.
Solana’s SOL has now taken over and has outperformed the broader crypto market in the last 24 hours. The coin added over 7% to its value to hit the $204 mark for the first time since February.
At press time, SOL is trading at $200 per coin and could rally higher amid bullish momentum.
SOL targets a new all-time high of $300
The SOL/USD 4-hour chart is bullish but inefficient, indicating that Solana could dip lower before resuming its rally. Its technical indicators suggest that SOL is currently overbought, and this could see the coin face a correction.
The RSI of 38 shows that the pair has a strong buying momentum, while the MACD lines are within the positive territory, indicating a bullish bias. The breakout above $200 is a strong bullish indicator, suggesting that SOL may be preparing for a sustained move higher.
SOL’s ongoing rally also saw it climb above the 20-week Exponential Moving Average (EMA), reinforcing the bullish structure. This crossover above a long-term moving average could be the beginning of a new upward trend in price.
If the bullish momentum is sustained, SOL could challenge and break above the $224 resistance over the next few hours or days. However, it must hold the support level around $170 for the breakout to hold and extend. An extended rally would allow SOL to test the $243 resistance level before attempting to take out the all-time high price of $294.
However, if the market faces a correction, SOL would need to defend the $170 resistance level to avoid a drop below $150.
