Solana (SOL), a blockchain platform known for dealing with deals quickly and being able to grow, has broken through the important $160 resistance zone. In other words, the price is now going up. New sources say that this move is being made because the network gets more currency in 24 hours than Bitcoin (BTC).
Blowout above $160 fixes the imbalance above the month-long range and confirms SOL’s earlier higher period uptrend. Analysts believe that the area around $160 will likely support the price going forward, giving it a solid base for more growth.
Solana’s Market Structure Strengthens
Even though prices dropped to $122 in April, the daily market structure for Solana stayed strong. As soon as prices went above $160, internal signs went from being bearish to bullish. On the daily chart, it is clear that the Relative Strength Index (RSI) has gone above the stable 50 line. This means that the price is strongly going up.
On-Balance Volume (OBV) struggled to break through a local resistance level, and trading volume dropped, which was especially surprising given how important the $160 resistance level was. Analysts say that these volume signs could be a problem for buyers, suggesting that a test of the $160–$165 area as support may be in order, which would be a good time to buy.
Looking ahead, the next targets for Solana are the levels of the Fibonacci extension at $210 and $236. This means that if the current trend of going up continues, the price could go up even more. The Open Interest chart has also gone up a lot—by more than $400 million just this week. This shows that more people are interested in the futures market.
Over the past few weeks, the spot Cumulative Volume Delta (CVD) has also been strongly going up. This makes the case for SOL even stronger as a buy. Strong spot market demand has caused the prices to go up, even though there have been small but steady short liquidations over the past few days. So, it looks like the rally might have long-term strength.
Investors are sure that SOL will continue to rise in the days and weeks to come since it broke out above $160 and there are many strong reasons supporting its upward trend.
