On Friday, Solana (SOL) showed intense bullish momentum, as its price rose above a significant resistance level at $160. This has encouraged a number of analysts to project a possible large rally as the cryptocurrency market gets ready for what is called ‘Uptober.’
The ongoing surge for Solana gained momentum last week due to broader optimism in the market after the U.S. Federal Reserve made its rate cuts. The cryptocurrency first succeeded in surpassing the $140 resistance, which converted it to support following a month of struggling in the $130-$139 range.
Solana Faces Potential Retrace
There was some investor worry over the possibility of a correction following this consolidation. Solana’s price has risen by 23% since the recent bullish breakout and has gone past $150 earlier this week. At $160.68 on Friday, it was its loftiest point since late August.
The robust representation of the market grew thanks to enthusiastic expectations for the early release of Binance founder Changpeng Zhao, which resulted in gains for both Solana and Bitcoin, the latter rising to reach $66,000.
According to crypto analyst Crypto Horn Harris, the remarkable increase has led him to say that Solana’s weekly chart ‘looks insane.’ He made note that SOL was able to retest its Relative Strength Index (RSI) and finish a ‘perfect reset’ of its 50-day moving average. Harris believes the cryptocurrency is moving towards challenging the $200 level and may even go higher.
Still, there is a split among opinions. Analyst Matthew Dixon believes that a retraction lies ahead for Solana, based on certain indicators that indicate a corrective period is on the horizon. He is still doubtful about the magnitude of the decline, but he points out that the trend will stem from the shape of the price, whether it is an ABC or 123 pattern.
At the same time, influential analyst, Byzantine General, argued that Solana could be forming an Adam and Eve double-bottom pattern. Should SOL sustain the $160 price point, it could break through the $200 resistance, causing analysts to say that the cryptocurrency “would go nuts.”
