Solana has staged a breakout over the last week, surging 15% to reclaim the psychologically crucial $65 level. The powerful momentum comes as on-chain data reveals trading volumes crossing $1.4 billion in 24 hours, surpassing combined totals from rival layer-2 chains Polygon and Optimism. Solana also holds nearly $700 million in total value locked across its thriving DeFi ecosystem.
Keypoints
- Solana price gained 15% in one week to exceed $65 resistance
- Daily trading volumes topped $1.4 billion, surpassing Polygon and Optimism
- Indicators like RSI show bullish strength while moving averages provide support
- Upside price target at $75 in coming days, then potentially $100 in 2024
- But failure to hold above $62 support risks retesting lower $50 level
Analysts suggest the burgeoning network activity and asset flows point to a maturing Solana positioned for additional upside. Some even eye a potential push towards triple-digit valuations should tailwinds persist into 2024.
“If the bulls hold the price above the key resistance level of $65, the SOL price will continue to gain value and prepare to test its upper resistance level of $70,” said crypto analyst Elena R in a research note published December 4. “Maintaining the price at that level will set the stage for Solana to attempt to test its upper level of $75 in the coming week.”
$SOL: expecting some chop between $50-$75 for some amount of time. Usually price likes to fill out the inefficiency. Overall, I do think that this goes to 3 digits in 2024 though. #Solana pic.twitter.com/IgMOXgrocQ
— Altcoin Sherpa (@AltcoinSherpa) November 30, 2023
The upbeat projection aligns with strengthening technical indicators. Solana’s relative strength index (RSI) shows sustained readings above 50 since mid-November, indicating durable positive momentum. The moving averages also convey bullish signals, with the 50-day mean angled upwards and now acting as support around $59.
But risks remain ever-present for such a speculative asset. An influx of selling pressure that pushes Solana back below its recently reclaimed 20-day moving average at $62 could deflate the rally. In a bear case scenario, Solana may return to its floor around $50 if broader appetite for risk assets wavers.
Still, analysts like Altcoin Sherpa spy opportunity in any material pullbacks. They advocate accumulating Solana on dips below $50 and anticipated the breakout to $65 and beyond. With eyes toward 2024, Sherpa set a Solana price target around $100 if forecasts for a new crypto bull supercycle prove accurate.
