Solana price hits $200 despite opening $32M FTX. Explore three charts that show a strong upward recovery is imminent.
Solana (SOL) price has made an impressive rally of 21% in the past seven days, but the recent FTX open has created uncertainty about whether the altcoin can break $200.
Amid the uncertainty, three chart patterns involving different metrics have emerged, suggesting that SOL is likely to breach this psychological level soon and possibly target all-time highs.
Solana is priced at $179 today as resistance for the bulls.
SOL price is trading at $175 at press time after a modest gain of 0.5% in 24 hours. During this time, SOL reached an intraday high of $179, which also doubles as a key resistance level, before returning to range-bound trading.
Solana suffered a rejection at $179 after reports that FTX unlocked 187,600 SOL tokens worth $32.79 million from its staking account. Unlocked tokens have created uncertainty about increased selling activity that could affect SOL.
However, Solana's gains will likely continue as crypto prices remain bullish today, with Bitcoin (BTC) briefly moving above $105,000.
Moreover, the 3 charts suggest that $SOL will likely resume the uptrend to overcome resistance at $179 and cross $200.
Breakout from an ascending channel
One of the charts that explains why the price of Solana could break the $179 resistance level and reach $200 is the daily chart that shows an ascending breakout from the ascending parallel channel.
At press time, $SOL was testing resistance at the upward sloping resistance line, and if it can break that level, it will move up to $219.
The technical indicators on the daily price chart above also suggest that Solana may break out beyond $180 and move towards $200.
The RSI has risen and reached 72, indicating a strong bullish momentum and scope for further growth as the coin is yet to be overbought.
The 20-day SMA is also pointing north and targeting a crossover with the 200-day EMA, and if that happens, it could push Solana to $200. It will help you achieve more.
Weekly active SOL addresses reached a 3-month high.
Artemis' daily active address chart also explains why, despite recent $32M opens by bankrupt FTX and Alameda Estate, Solana's price is likely to hit $200 soon.
This metric recently rose to over 5.1 million, marking the highest level since the mid-2000s.
An increase in weekly active addresses highlights an increase in user demand and network activity, which can often precede a significant price move for a token.
A high address count also indicates increased user engagement and increased liquidity to enable an upward trend.
The Solana price tracks global liquidity.
The Global Liquidity Index chart further explains why Solana has the potential to breach $200 and reclaim new highs.
Analyst curb.sol noted that SOL is tracking global liquidity, suggesting that the token could not only rise above $200, but also target $400.
Looking at past trends, it is clear that SOL increases when global liquidity, a metric used to measure money available in circulation, also increases.
This supports the bullish forecast for Solana's price and the possibility that it may cross the $200 level soon.
So, looking at the three charts: the daily price chart that shows rising breakouts, weekly active addresses, and increasing global liquidity, it is clear that Solana can reach $200 after overcoming the resistance at $179. If SOL crosses this psychological threshold, it could move towards all-time highs.
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