In a notable shift, Solana (SOL) saw its price soar by over 10% in a 24-hour period, rebounding from a recent low of $75 to reach an intraday high of nearly $89. This sharp rise reflects the broader recovery within the cryptocurrency market, which saw its total market capitalization climb to approximately $2.28–$2.38 trillion.
Leading the pack was Bitcoin, which rebounded over 5%, trading between $66,800 and $68,000. This upward movement in Bitcoin acted as a catalyst for major altcoins, with Ethereum gaining 8%, XRP increasing by 6%, and Dogecoin also seeing a rise.
Notably, US-traded spot Bitcoin exchange-traded funds (ETFs) attracted $258 million in net inflows on February 24, with Fidelity’s FBTC leading the way with an impressive $82.8 million. This resurgence indicates renewed institutional interest in the market, which bodes well for broader crypto sentiment.
Solana-specific demand has surged in similar fashion. Since February 9, spot Solana ETFs have garnered $40 million in net inflows, contributing to the upward pressure on SOL. Additionally, SOL’s open interest increased by more than 5% to reach $5.27 billion, along with recorded short liquidations totaling $15.4 million in the same 24-hour period.
Breaking Key Technical Levels
A technical analysis reveals a significant breakout for SOL, as it managed to emerge from a symmetrical triangle pattern on the six-hour chart. This breakout suggests a potential price target of $110, coinciding with the 50-day simple moving average (SMA). Analysts note that for this upward momentum to be sustained, SOL must remain above the 100-day SMA at $86. A daily close above the 20-day exponential moving average (EMA) at $88 could pave the way toward key resistance levels at $95 and $117.
According to data from Glassnode, buying activity has historically been limited above $85, indicating fewer holders in this range. This could potentially reduce selling pressure in the short term as investors are less likely to sell at a profit.
As of recent reports, SOL’s Relative Strength Index (RSI) sat at 72.84, nearing overbought territory, while the Moving Average Convergence Divergence (MACD) indicated a bullish crossover with a histogram reading around 1.20.
Future Outlook and Market Drivers
Looking ahead, analysts suggest that a sustained Bitcoin price above $72,000 could trigger Solana’s next bullish phase, potentially accelerating the price towards the critical $100 mark. Immediate resistance levels are identified at $90, followed by $95, with $100 being the psychological key. Beyond that, a significant resistance zone exists around $115, where about 22 million SOL tokens were previously acquired by investors.
This upcoming week holds various macroeconomic events, including Thursday’s jobless claims and the January Producer Price Index on Friday, coupled with speeches from eleven Federal Reserve officials, all of which could influence the market’s trajectory.
As SOL trades at around $88.56, with a session high of $89.19 and a low of $85.98, the crypto community will be watching closely to see how swiftly it can navigate these resistance levels and maintain its upward momentum.
