Highlights:
- Solana has built on yesterday’s bullish sentiment and is headed higher
- The $153.71 resistance is a pivotal level to watch in the short term
- A breach of the $153.71 resistance could trigger a rally to $173 if Bitcoin remains bullish
Solana (SOL) continues to ride the bullish sentiment that has gripped the cryptocurrency market, mainly driven by the rising momentum of Bitcoin (BTC). In the last 24 hours, Solana has gained 0.91%, pushing its price to $142.80 at the time of writing. This rise is accompanied by a significant increase in trading volumes, which have surged by 27% to reach $3.32 billion.
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Bitcoin Driving Solana’s Price Action
Solana’s current price action is less influenced by developments within its ecosystem and more by the overarching bullish sentiment surrounding Bitcoin. Bitcoin has been showing signs of strengthening, maintaining a solid position above the $55,800 support level. It is currently trending towards the $58,000 mark, a movement that is likely to inspire confidence among traders and lead to more buy positions.
The strengthening of Bitcoin benefits Bitcoin holders and boosts the performance of various altcoins, including Solana. Solana’s price has experienced a significant rebound, trading over $140 after hitting lows of $120 last week. This upward momentum reflects a broader market sentiment favouring a bullish outlook.
Solana’s Technical Landscape – SOL Still Range-Bound
A glance at the technical charts reveals that Solana remains within a multi-week trading range, bounded by a support level at $127.80 and a resistance level at $153.71. The increasing buying volumes indicate a potential breakout scenario. If the bullish market sentiment, primarily driven by Bitcoin, persists, Solana could break through the $153.71 resistance. Should this occur, SOL might reach a high of $173.22 in the short term.
However, the cryptocurrency market is notoriously volatile, and Solana’s future price action could take different paths. Solana might continue consolidating between the $153.71 resistance and $127.80 support levels if the market momentum weakens. Alternatively, if Bitcoin’s trend reverses and drops below $55,000, Solana could lose its $127.80 support and potentially fall to as low as $100.
Market Sentiment and Investor Behavior
As the Fear and Greed Index indicates, the current market sentiment is at 37, suggesting that the market is trading at the bottom. The market bottom is when short sellers are hesitant to take positions, and savvy investors start to take long-term buy positions in anticipation of a clearer uptrend. Solana could keep increasing until a full breakout draws retail money through FOMO buying.
Given the overall market sentiment and the rising adoption of Solana as a platform of choice for launching decentralized applications, the probability of Solana breaking through its current resistance levels appears higher. If Bitcoin can maintain its upward trajectory and hit $60,000, it would boost confidence across the market. This would pave the way for Solana to break the $153.71 resistance and aim for the $173 level.
the results are in: solana uk stays shipping 🇬🇧 pic.twitter.com/viX8oOBOdu
— Solana (@solana) July 7, 2024
Solana Beyond Bitcoin’s Price Correlation
The increasing adoption of Solana for Dapps is a crucial factor that could attract more investors as the broader market sentiment turns positive. Solana’s low transaction costs and high throughput have made it a preferred choice among developers, which bodes well for its long-term prospects.
Moreover, the rising trading volumes indicate growing investor interest and participation. It suggests that Solana’s current price movements are backed by solid trading activity. This could help sustain the upward momentum and support further price gains.
Recap On Solana’s Potential Price Action
Solana’s current price action is closely linked to Bitcoin’s bullish momentum. With Bitcoin trending towards $58,000 and the market sentiment turning increasingly positive, the odds are in favour of Solana breaking its current resistance and aiming for higher price levels in the short term.
However, the cryptocurrency market’s inherent volatility means investors should remain vigilant and be prepared for potential fluctuations. As Solana continues to gain traction as a leading platform for Dapps, its long-term outlook remains promising, with $173 as a critical short-term target.
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