Approaching Golden Cross Could Signal a Turning Point for Solana's Price Action

Solana has experienced a month-long uptrend, bringing the “Ethereum killer” closer to the $200 mark. Despite this progress

Solana has been on an uptrend for a month now, bringing the “Ethereum killer” closer to the $200 mark. However, despite this progress, it seems like the altcoin is struggling to gain enough momentum to break the key resistance.

As Solana approaches the Golden Cross, this could be the turning point needed for its price action.

Solana Shows Potential

The MVRV ratio for Solana currently stands at 1.3, which indicates that the token is far from overbought. According to previous cycles, the overbought threshold is closer to 1.8. This suggests that Solana has some room for growth before we might see a price correction.

This finding might be reassuring for investors, as it implies that the altcoin’s recent gains are sustainable. The healthy MVRV ratio indicates that Solana’s price growth is supported by fundamentals rather than speculative excess, reducing the likelihood of a sharp pullback.

Moreover, technical indicators highlight a significant shift in Solana’s momentum. The 50-day exponential moving average (EMA) is about to cross above the 200-day EMA, ending a death cross that lasted over two months. This crossover will confirm a Golden Cross, a bullish signal that is often followed by extended upward trends.

The previous Golden Cross for Solana lasted nearly 17 months, and it drove substantial price appreciation. While this new bullish phase might be shorter, it could still provide a solid foundation for gains in the near to mid-term, attracting increased investor interest.

Solana is currently trading around $172 and is facing resistance at $178. Flipping this resistance into support is crucial for the altcoin to move past $201. Given the positive momentum indicators, a rally in the coming days seems likely.

The macro target for Solana is a 51% rise, reaching $262 by the quarter’s end. This would recover the losses seen in early 2025 and position SOL to challenge its all-time high beyond $295. However, securing $221 as a support is a key step to sustaining this upward move.

Conversely, if broader market conditions weaken, Solana might fail to breach the $200 level. This could lead to a decline back to $161 or even $148, negating the bullish thesis and putting the ongoing uptrend at risk.