Solana (SOL) recently broke out of its sideways trend, reclaiming $200 as support after trading below this level for much of December. This bullish move has reignited investor optimism, suggesting that SOL could continue its recovery towards higher price targets.
The Net Unrealized Profit/Loss (NUPL) indicator shows investor confidence despite recent volatility, as many retain their holdings, reducing supply pressure. This confidence supports the uptrend and paves the way for further growth.
The Relative Strength Index (RSI) climbing above the neutral level indicates returning bullish momentum. A sustained RSI above 50.0 typically signals a favorable environment for upward movement, suggesting Solana is well-positioned to capitalize on this sentiment.
Solana's macro momentum is gaining strength, and renewed bullish strength could help reclaim critical resistance levels, pushing SOL higher.
Currently trading at $205, up 8.7%, SOL flipped the $201 resistance into support. Sustaining this level is crucial for ongoing recovery, with the next target at $221 and ultimately reaching $245.
However, any lack of sustained momentum or profit-taking could cause SOL to lose the $201 support level, potentially consolidating above $186 or falling below, which would invalidate the bullish thesis entirely.
