Solana (SOL) broke above a key resistance level on Friday, fueling the bullish sentiment that reignited over a week ago. As a result, some analysts think the fifth-largest cryptocurrency by market capitalization could be about to see a massive bull run as “Uptober” approaches.
Solana Retests $160 Resistance
Solana’s rally started last week following the market surge driven by the US Federal Reserve’s rate cuts. The jump pushed the cryptocurrency’s price above the $140 resistance level, successfully turning it into support.
SOL had failed to break above this key level throughout the past month, consolidating between the $130-$139 price range. This performance alarmed many investors and market watchers, who considered the cryptocurrency was in danger of facing a massive correction.
Since the bullish catalyst, Solana has seen a 23% surge, breaking above the $150 barrier this week. Some analysts asserted that reclaiming this mark would propel the price toward the next key resistance level.
On Friday, Solana broke above the crucial resistance level for the first time in a month, hitting $160 for the first time since late August. As of this writing, SOL reached a daily high of $160.68, momentarily holding the above the key level.
This performance was seemingly fueled by the “bullish vibes” surrounding the early release from prison of Binance’s founder Changpeng Zhao (CZ). The expectation of his release further inspired a bullish market sentiment among investors, driving SOL’s 4% jump in an hour and Bitcoin’s price to $66,000.
Is SOL Price About To “Go Insane”?
Analyst Crypto Horn Harris noted Solana’s price action on the weekly chart, claiming it “looks nothing short of insane right now.” He underscored that SOL’ retested the Relative Strength Index (RSI) “properly” while doing a “perfect reset” of the 50-day Moving Average (MA).
To the analyst, this performance hints that the cryptocurrency will challenge the cycle’s high above $200 and move to higher targets soon. WiseAnalyze claimed that SOL’s price “is still very low,” suggesting that investors still can “jump on that trend.”
The trader set his target for the cycle’s final breakout at $400, “but it might grow higher.” However, he didn’t rule out the possibility of another rejection, with a pullback to the $108-$120 support zones.
Similarly, Matthew Dixon also forecasted a retrace for Solana. The analyst believes a pullback is due, as multiple indicators suggest the correction. However, the “jury is out on the scope of the decline.”
Dixon stated that SOL’s price targets will depend on whether “the price action from the low is in the form ABC Or 123.” But “either way, the retrace is likely.”
Crypto analyst Byzantine General considers SOL’s chart to look “pretty crazy.” The trader highlighted that Solana appears to be printing an Adam and Eve (A&E) double-bottom pattern, with the confirmation line around the $160 price range.
Based on this, Solana’s price “could go really nuts,” as it has the potential for a breakout toward the $200 resistance level if it successfully reclaims the key support level.
Featured Image from Unsplash.com, Chart from TradingView.com