Solana (SOL) Could Be Repeating a Historic Pattern as It Regains a Key Support Level

Solana (SOL) has recently regained a key support level that played a critical role in its meteoric rise during the 2021 bull market.

Solana (SOL) has recently shown signs of strength by reclaiming a key support level, indicating a potential bullish trend.

Earlier this year, Solana’s price surged past the $200 mark on Gate.io, hinting at a possible new record in the making. However, this surge was quickly followed by a steep 36% correction, leading many to believe that SOL had already peaked for this cycle.

But a closer examination of the technical signals on the weekly chart reveals a different narrative. Solana last touched the crucial $140 support level in August 2021, and by November of the same year, SOL had soared by 83% to reach its all-time high (ATH) of $270.

This time around, Solana reclaimed the $140 support level after bouncing off the $128 Fib Retracement level. Interestingly, the last time something similar happened was in August 2021.

Crucial to this bullish outlook is the Relative Strength Index (RSI), which broke above its downward trendline during the 2021 bull run, signaling the explosive price move. Now, a similar RSI breakout appears to be unfolding, suggesting that SOL could be primed for another major rally.

If Solana’s current trajectory mirrors its previous performance, the price could hit $260 once again within the next few months and potentially move even higher.

Another bullish indicator for Solana is its network activity, which has seen a surge in active addresses on the blockchain, reaching an all-time high. This signifies increased participation in transactions on the Solana network. Typically, an uptick in active users indicates growing demand for the token, which could fuel further price increases.

If the current trend of rising network activity continues, it will likely provide a strong foundation for SOL’s price growth in the near future.

On the daily chart, Solana appears poised to break through the $151.99 resistance level, especially as the Exponential Moving Averages (EMAs) begin to shift. Currently, the 50-day EMA (yellow) is still positioned above the 20-day EMA (blue), indicating that Solana has not yet fully entered a bull phase.

However, the shorter EMA is on the verge of crossing above the longer one, which could signal a significant upward price move. If this crossover occurs, SOL could potentially break through overhead resistance, aided by the $144.64 level.

Assuming this bullish scenario plays out, Solana’s next target could be around $176.07. If the momentum continues, it might even reach $194.08, potentially setting the stage for a run toward $260 and beyond.

That said, a drop back to $129.77 would invalidate this bullish outlook, with the price potentially declining further to retest that support level.