In the past week, the price of Solana (SOL) has surged strongly, rising 10% due to a wave of optimism spreading throughout the cryptocurrency market.
The return of confidence has become the driving force for SOL to continue climbing, and with the upward momentum being reinforced, this cryptocurrency seems ready to enter a sustainable growth cycle.
The SOL bulls are dominant
In the past week, the price increase of over 10% has allowed SOL to move steadily within a gradually ascending parallel channel on the daily chart.
This pattern forms when the price continuously creates higher highs and higher lows, oscillating between two parallel trend lines with an upward slope. The lower boundary acts as a dynamic support level, while the upper boundary is a key resistance level.
When an asset moves within this structure, it reflects a clear upward trend, with demand overpowering supply. The relative strength index (RSI) of SOL also supports this scenario, as it is at 57.63 – indicating that buying pressure is leading the market.
Essentially, the RSI oscillates between 0 and 100 to measure the 'overbought' or 'oversold' state of an asset. An index above 70 typically signals a risk of a downward correction, while below 30 implies a possibility of recovery. At the current level, the RSI indicates that investors are leaning towards accumulation rather than profit-taking, opening up opportunities for prices to continue rising if this trend persists.
Not only that, SOL's Elder-Ray Index is also reinforcing a positive outlook. After a consecutive 9 days of red histogram appearances, this index has returned to a positive state in the last two sessions, reaching 11.71 at the time of writing. This reversal indicates that market momentum is improving, with buying pressure overwhelming selling pressure and buyers taking control.
Summarizing the signals, both RSI and Elder-Ray are leaning towards the 'bull' side, indicating that SOL's recent rally could very well extend if buying pressure remains sustainable.
The confrontation between bulls and bears at the $186 level
At the time of writing, SOL is trading at $181.82, just a short distance from the resistance level of $186.52 — which is also the upper boundary of the gradually ascending channel.
If buying pressure continues to increase, this token could completely break through barriers and conquer the important psychological level of $190.
Conversely, the return of selling pressure could cause SOL to lose its current upward momentum, retreating to near support at $176.64.