Key takeaways
- SOL is up 7% in the last 24 hours and is now trading above $220.
- The coin could rally towards the $240 resistance as the broader market bounces back from recent lows.
SOL tops the $220 resistance level
The cryptocurrency market has turned things around following a poor start to the week. Bitcoin, the leading cryptocurrency by market cap, hit the $119k level a few hours ago, allowing altcoins to rally higher.
Solana’s SOL added more than 7% to its value in the last 24 hours, making it the second-best performer among the top 10 cryptocurrencies by market cap. SOL’s rally is fueled by Circle’s tokenized U.S. Treasury fund, USYC, launched on the Solana blockchain. This launch means that USYC has expanded beyond the Ethereum, Near, Base, and Canton networks.
USYC has a $630M market cap, making it the fifth-largest tokenized treasury offering. Its launch on Solana could increase the adoption of SOL among institutional investors. The integration on Solana adds new potential use cases for USYC, including using the tokenized treasury as margin collateral for derivatives trading or as a yield-bearing asset in Solana-based DeFi platforms.
SOL targets $240 as rally continues
The SOL/USD 4-hour chart has switched bullish after the coin rallied over the last 24 hours. The coin has broken above the $220 resistance level and is now trading at $224 per coin.
The momentum indicators have also switched bullish. The RSI of 70 shows that buyers are in control, and if it rallies higher, the RSI could enter the overbought region. The MACD lines are also within the positive region, suggesting a bullish bias.
If the rally continues, SOL could surge towards the next major resistance level at $241. However, the SOL/USD 4-hour chart is inefficient, which could see it grab liquidity around $214 before rallying higher.
On the flip side, if the market undergoes a correction after its recent rally, SOL could retest the support and TLQ level at $205. The bulls would defend this level, as losing it could see SOL dip below $200.
