Solana price rebounded 16% over the weekend, to reclaim the $140 territory on Monday, July 8, a divergent trend between SOL price and Open Interest suggest more upside potential in the week ahead.
Solana Price Hits $140 After 16% Weekend Gains
The crypto market experienced intense downward volatility in the first week of July, with mega cap altcoin like Solana booking double-digit losses.
However, following the recent non-farm jobs reports released by the US Bureau of Labor Statistics on Friday, July 5, investors’ sentiment surrounding the crypto market has improved considerably.
Combined with bullish headwinds from VanEck’s recent Solana ETF filing, this shift in market momentum lifted SOL price significantly over the weekend.
Solana’s price had tumbled to $121 on July 5, its lowest in 35 days dating back to May 2024. But since the US authority released the dovish NFP data on Friday, buyers returned to the crypto markets, in hopes that the US economy is inching towards the much anticipated interest rate cuts.
Since reaching a 35-day low of $121 on July 5, Solana price has rebounded 16% over the weekend, to reclaim the $140 level at the time of writing on Monday July 8, while the likes of BTC and ETH have only managed 9% uptick during that period.
This suggests that positive developments surrounding Van Eck’s Solana ETF approval may have attracted investors attention towards SOL in recent days. If this rising demand persists, Solana price could be on the verge of reclaiming the critical $150 resistance level in the week ahead.
Solana Price Forecast: SOL Could Reach $150 this Week
Solana (SOL) has demonstrated a notable recovery over the past few days, as indicated by the recent price action and technical indicators on the daily chart. The price has rebounded from the recent low of $120, showing a strong bullish momentum.
The recent close at $136.98, combined with a 4.08% increase, suggests that buyers are gaining control. The ALMA (Arnaud Legoux Moving Average) at 136.15 is also being respected as a dynamic support level, which further reinforces the bullish sentiment.
The Commodity Channel Index (CCI) is currently at -33.64, which, although still below the 0 level, indicates a move towards the neutral zone from a previously oversold condition. This transition typically suggests that selling pressure is waning and a potential shift to upward momentum is imminent. Traders should watch for the CCI to cross above the 0 level, as this would provide a stronger bullish confirmation.
Key resistance levels to watch are at $140 and $150. The $140 level is a psychological barrier and has previously acted as a resistance point. If the price manages to break and sustain above this level, it could open the path towards $150, which is another significant resistance zone. On the downside, immediate support is found at the ALMA of 136.15, followed by the recent low of $120. A break below $120 could signal a bearish reversal and a retest of lower support levels around $110.
In conclusion, the technical indicators and recent price action suggest that Solana has the potential to reach $150 this week, provided it maintains the current bullish momentum and breaks through key resistance levels. Traders should monitor the CCI and ALMA for additional confirmation of the trend’s strength and be mindful of the support levels to manage potential downside risks.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
