- Solana’s weekly close above $202 has flipped this level from resistance to support, signaling a bullish technical setup.
- This breakout and support retest could position SOL for a potential target of around $260 if market conditions remain favorable.
- External market factors, including broader crypto trends, will play a crucial role in determining whether Solana can sustain this upward momentum.
Solana (SOL) has moved to the next technical level to record a new weekly close this week and this has excited traders and analysts. This close also depicted that SOL has not only breached its prior resistance level at $202 but has also tested this level as new support. While doing so, the development points out that technically, Solana could have more room to rise as analysts believed that the cryptocurrency might reach around $260 in the long run.
Weekly Close Marks a Key Breakthrough
Last week’s weekly close is special, how we can see it breaks the $202 in a convincing manner which is highlighted in red in the price chart below. Going over this level and using it again as a support line is an exciting technical formation showing that there is a chance to go further up.
Throughout history when one flips a key resistance level to support level we have witnessed extended upward movements and that is exactly what SOL has done this week. The $202 level has been a psychological barrier in the past encouraging some failed attempts to forge above it in early this year hence this recent push is encouraging for bulls.
Potential Risks and $260 Target in Sight
As this first critical technical level holds support, the focus is shifting to other possible reversal levels which can be around $260 level. It is a target derived from prior price behavior and is borrowed from other previous bullish phases evident in Solana. Nevertheless, it should be pointed out that it may take more to reach this level, other than sheer buying pressure by traders, including support from the broader market condition as well as continued demand for SOL.
Technically speaking, SOL has a bright future, but untoward instances, or market fluctuations could still affect its performance. Other factors specific to the wider market, including Bitcoin and sentiments prevalent in the crypto space, may however, affect SOL’s volatility. These factors on the flip side ought to be closely observed while traders cheer SOL’s retest of $202 support.
