Solana is bullish at this level as it bounced back to reclaim the 4-hour SMA and head for $209. This upward movement shows emergence of new investors, enhanced buying promoting the expectancy of higher stock price in the market.
The most recent event of significance that played out in the cryptocurrency’s chart was a breakout above the 4-h SMA which marks flips in sentiment and short term trend. This has now become a support area and the more SOL stays above it the more confidence one has in SOL rallying higher.
Solana’s RSI Signals Strong Bullish Momentum
There is another bullish signal and that is Solana’s Relative Strength Index (RSI) which is now trading above the middle line (50% level) and still on the rise. Presently, the RSI index cements its future to portray increased buy pressure and less selling pressure, supporting the upward forecasts.
Therefore, as long as the RSI remains below the overbought level which is above 70, SOL will not necessarily require a reversal back down. Nonetheless, there are hurdles along the way to $209. This means that further upwards movement could be hampered by the levels of resistance and instances of profit taking thus further buying interest is deemed important.
If the price renews the high around $209, it will further strengthen the uptrend pushing more targets to the $240 and the $260 high. On the downside, if SOL fails to close the weekly candle above $209, it may reclaim the $194 support maybe extending its losses toward $164 support.
A pull back of this nature may present a consolidation pattern through which the market could attempt to retest the higher resistance level. With bulls getting in position to extend the gains, all the focus stays on whether Solana can hold on to the momentum ahead. If traders sustain the buying interest above $209 then probably it can be considered as a milestone for SOL to come out of the bear trap and possibly move upwards.
