“SOL still looks like one of the strongest coins in the market,” one analyst claimed.
Driven by the green wave sweeping the entire crypto market, Solana’s native token briefly pumped above $90, reaching its highest level in the past 20 days.
Currently, the asset appears to be at a crossroads, with some analysts calling for a pump above $100, while certain indicators signal an impending correction.
In the Middle of a Breakout?
According to the popular analyst Ali Martinez, SOL is undergoing a bullish breakout and seems to be escaping a symmetrical triangle to the upside. He believes that a spike in buying pressure could send the price to $92 or even $96. However, traders may need to hope for a potential push to the upper boundary, as the analyst recently argued that anything within the $77-$94 range falls into a “no-trade” zone.
Other market observers who touched upon Solana’s performance and made predictions include X users Julian and Wealthmanager. The former noted the volatility lately, but claimed that buyers remain active. They described $85 as an important support level, adding that if SOL stays above $90, it could see another move higher.
Additionally, the strategist outlined that Solana’s biggest strengths lie in its consistently high network usage, driven by strong meme coin trading activity, a large number of active users, and fast, low-cost transactions.
“Short-term moves can still be aggressive, but in the bigger picture, SOL still looks like one of the strongest coins in the market,” they concluded.
WealthManager was even more bullish, forecasting that a pump to the psychological milestone of $100 is “just a matter of time.”
Time to Cool off?
Certain technical indicators, such as Solana’s Relative Strength Index (RSI), suggest that the bears may soon retake control. The ratio recently jumped to 80 before slipping to the current 66, which is quite close to overbought territory. The index runs from 0 to 100, and conversely, anything under 30 is typically seen as a precursor of a rally.
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Next on the list is the rising amount of SOL tokens being transferred from self-custody to centralized exchanges lately. This is considered a bearish factor since it increases the immediate selling pressure.
Meanwhile, the analytics platform Lookonchain revealed that a newly created wallet opened a 20x short position on 240,000 SOL worth more than $21 million. Such an aggressive bet against the asset could weigh on sentiment, as it suggests that the person or entity may be acting on information of upcoming news or events that retail investors don’t have access to.
