Highlights:
- Solana is trending toward the $184.62 resistance
- A rally through the $184.62 resistance could see Solana hit $200 short-term
- Rising Bitcoin and Solana meme coin demand could trigger a rally to $200
Since October 11, Solana has been on a steady rise. Today, it continues this upward momentum, following in Bitcoin’s strong start to the week. At the time of going to press, Solana was trading at $176.78 with a 1.42% change on the day.
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Technical Analysis – Solana Price Trending Towards Critical Resistance
From the charts, the probability of the upward momentum for Solana continuing is high. To build on this positive momentum, however, solana will have to surpass the resistance level of 184.62 on the daily chart.
Should it do that, it would mean that the buyers have taken full control of the market. Breaking through resistance might also open the door for rapid growth to $200 in the near future. On the contrary, should Solana not manage to break the $184.62 high, two scenarios may come into play.
In the first scenario, Solana might start trading in a range between the $184.62 high and the $158.54 low. In the second scenario, the possibility of some correction of price might see Solana breach the $158.54 support and target prices as low as $130 in the short term.
Bitcoin’s Performance is Helping to Keep Market Sentiment Bullish
Despite these risks, there is more potential for an upside breakout. For one, Bitcoin looks to be gaining strength and may be poised to break out soon, especially after the upcoming US elections.
Usually, when there is a Bitcoin bull market, altcoins usually follow. Altcoins like Solana, which is already showing good signs, may only need Bitcoin’s performance to give them that extra push away. This puts a $200 target in the short term within target.
Meme Coins and Stablecoins Are Helping Increase the Demand for Solana
Besides, Solana is witnessing more attention as the ideal launching platform for meme coins. As the general cryptocurrency market seems to be signaling for a bull run investors are turning towards meme coins hoping to earn a fortune. Such meme coins are likely to add on the total demand for Solana ultimately raising its value especially in a bullish market.
Gm CT!
I love Sundays, my Solflare wallet, and all the #Solana alts making me money in it!!
Too many to list, so I’ll just say $Nosana pic.twitter.com/0UCycmY6PH— cryptosteveo.sol (@CryptoSteveO1) October 27, 2024
Another key element boosting Solana’s price is the increasing demand from stablecoin providers. Stablecoins have now become pivotal instruments in the cryptocurrency market, providing liquidity as well as some measure of stability. Since Solana is also gaining the attraction of stablecoin providers, it could add to the demand for SOL over time.
Positive Sentiment Boosts Solana’s Chances
Market sentiment is also increasingly positive for Solana. According to the CoinMarketCap sentiment tracker, 84% of investors expect Solana’s price to move upward. This belief is also observable on social media where there are more analysts coming out in favor of Solana. Such positive sentiments might entice more retail investors, thus increasing the buying pressure and pushing Solana higher.
BREAKING: $ETH leads all chains in daily net outflows, while $SOL tops in net inflows. #Ethereum #Solana #ETH #SOL #Crypto
— _crymet (@_crymet) October 28, 2024
Outlook: Road Towards $200?
In view of the above factors, such as anticipating that Bitcoin will surge, an influx of meme coins, and the interest from stablecoin providers, Solana could easily rally through $200.
That said, investors should remain cautious of a possible downside correction. There are chances that the price of Solana may stagnate for some period or experience a downturn if the $184.62 resistance holds. This risk in the market at this point in time is minor, though.
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