Solana has successfully reclaimed what appears to be the critical level that set it on its path to $260 in 2021. Hitting this price suggests that SOL could retest its all-time high (ATH). It also means that SOL could possibly surpass it despite several rejected attempts. This analysis considers historical data and technical patterns supporting the move.
Earlier this year, SOL’s price surpassed $200 but eventually plummeted by 36%. However, signals from the weekly chart indicate that pessimistic sentiment is inaccurate. Solana recently crossed the $141.82 support, which is similar to what happened in August 2021 before it reached $260 in November. The Relative Strength Index (RSI) also supports this, showing a pattern similar to the previous bull market.
If history rhymes with Solana’s past performance, the price could hit $260 and possibly surpass it within the next three months. An increase in Solana’s active addresses, which recently hit an all-time high, further supports this bias. This signifies a growing demand for SOL as more participants join the network, increasing successful transactions and driving up the price.
Based on the daily chart, Solana’s price could soon break the $151.99 resistance due to the position of the Exponential Moving Average (EMA). A potential rise of the shorter EMA above the longer one could validate an upswing, pushing SOL towards $176.07 and possibly $194.08.
However, a pullback to $129.77 might invalidate this upward bias. If this occurs, SOL’s price could decline to $129.77.
