Solana (SOL) Price Breaks Out From Its Trading Channel, Targeting $210

Solana SOL $150.7 24h volatility: 2.6% Market cap: $78.04 B Vol. 24h: $3.80 B

Solana (CRYPTO: SOL) price was up 4.3% over 24 hours on Monday evening, continuing a recent rally that has seen the cryptocurrency climb 35% in seven days.

What Happened: According to data from Benzinga Pro, Solana was trading at $150.7 by Monday evening, having reached a 24-hour peak of $156.97. The cryptocurrency’s 24-hour volume was up 70%, and its market cap was estimated at $78.04 billion, making it the sixth-largest cryptocurrency.

Solana’s price movements align with a 3.3% rise in the broader cryptocurrency market, which saw total market capitalization fall back below $3.4 trillion.

Recent on-chain data from Glassnode shows a clear uptick in Solana network usage, with active wallet addresses climbing steadily over the past week.

Plus, in the past day, the network has recorded a 4.26% uptick in its total value locked (TVL), currently sitting at $9.53 billion.

Meanwhile, SOL outflows from exchanges have accelerated: holders withdrew over $16 million worth of SOL this week, following $107 million in withdrawals last week. Historically, large outflows suggest that investors are preparing for further price gains by shifting towards self-custody.

What’s Next For SOL PriceAnalyst Ali Martinez observed that SOL has been trading within a clear upward channel since May 12. He suggested that the cryptocurrency could test the upper boundary of the channel, estimated to be around $210.

#Solana $SOL has been trading in a clear uptrend channel since May 12.

The price is now approaching the upper boundary of this channel, with $210 in sight! pic.twitter.com/Iido4VThxz— Ali (@ali_charts) May 22, 2024Popular crypto trader Jelle also expressed bullish sentiment on X. He stated that once SOL manages to close above the $250 resistance level, it’s likely to continue rallying toward the $400 mark.

It's a good thing I still own a bunch of $SOL.

Once it clears $250, I doubt it stops before it hits $400-$500.

All the weak hands have been shaken out.

Time to reap the rewards.

— Jelle (@CryptoJelleNL) May 22, 2024On the daily chart, price is nearing the upper Bollinger Band, signifying a sustained uptrend. The middle band, serving as the 20-day Simple Moving Average (SMA), provides immediate support at around $165 to the cryptocurrency.

Key resistance lies at $190 as it coincides with the upper Bollinger boundary, and further up, we have $210, which is identified by an ascending channel pattern on the four-hour chart.

SOL price chart with RSI and Bollinger Bands | Source: Trading viewThe Relative Strength Index (RSI) has climbed to the mid-60s, indicating bullish sentiment. There is still scope for more bullish advances before we might see some corrective pullback.

The MACD is poised for a bullish crossover, while the histogram bars are currently in red. However, the decreasing height of the bars from the previous day confirms the increasing bullish momentum for SOL.