Solana has risen 21% in the last seven days, pushing its price back above the $200 mark. This represents a significant recovery for the token, signaling renewed confidence from investors.
With bullish momentum strengthening in the market, technical indicators on the daily chart suggest that SOL is likely to maintain its position above this crucial price level.
New buyers drive Solana's rise
Relative Strength Index (RSI) readings of SOL on the daily chart confirm the likelihood of new price highs. At the time of this analysis, the index is at 67.97, indicating more room for growth.
SOL RSI. Source: TradingView
The RSI indicator measures market conditions of overbought and oversold for an asset. It ranges between 0 and 100. Values above 70 suggest that the asset is overbought and may experience a price drop, while values below 30 indicate that the asset is oversold and may experience a recovery.
With 67.97, SOL's RSI suggests that the token still has room to grow, indicating that bullish momentum remains intact. The steady increase in RSI signals that buyers are becoming increasingly confident and may drive SOL's price higher before buyer exhaustion occurs.
Meanwhile, new demand for SOL has seen a significant increase over the past 14 days. According to Glassnode, the number of new addresses participating in SOL transactions for the first time has increased by 51% since August 3.
Number of New SOL Addresses. Source: Glassnode
An increase in new demand like this suggests that fresh capital is entering this market, reflecting growing interest and confidence among investors. This influx of new participants could help sustain SOL's price momentum and support further upward movement.
SOL targets $219 as demand strengthens support above $195
At the time of this report, SOL is priced at $207.17, comfortably above the support floor at $195.55. Growing demand may strengthen this crucial support level, which could help propel SOL towards the next resistance at $219.21.
SOL Price Analysis. Source: TradingView
However, an increase in profit-taking could invalidate the bullish outlook. If selling pressure intensifies, SOL may retest the support level of $195.55, and a failure to maintain it could cause the coin to retreat to $171.88.
The article 'Solana recovers $200 with a 21% rise and entry of new buyers' was first seen on BeInCrypto Brazil.
