Solana (SOL) Price Reaches New Yearly High
The Solana (SOL) price increased rapidly in October and reached a new yearly high of $32.81 today.
The price of Solana also broke out from a horizontal resistance at $28, while the Relative Strength Index (RSI) reached its highest value since November 2021.
Solana Retraces Entire FTX Decrease
In November 2022, the SOL price fell from a high of $31.72 to a low of $12.34 in two days. The decrease occurred as a result of the FTX exchange going bankrupt.
Today, cryptocurrency trader Joe McCann noted that the SOL price has retraced the entire drop.
This comes on the heels of trading volume hitting $1.7 billion, the highest value in more than three months.
Finally, the Total Value Locked (TVL) for the Solana blockchain is at $367 million, which is a new yearly high. This is still only 3% of the all-time high of 10 billion from November 2021.
What Are the Analysts Saying?
Cryptocurrency traders on X are predominantly bullish since the price has broken out from its main resistance area.
Pentosh1 believes that SOL will head towards at least $37 as soon as it breaks out above the midrange of $32.
SatoshiWolf has a similar target, but due to the numerous resistances at $37, he believes that the area represents an ideal spot to take profits.
Solana Price Prediction: How Long Will Increase Continue?
The weekly time frame chart for SOL is decisively bullish.
It shows that the price has finally closed above the $28 horizontal resistance area. This is the highest close since before the FTX crash (red icon). The close led to the Solana price yearly high of $32.81.
Also, the weekly Relative Strength Index (RSI) supports the continuing of the increase.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.
The indicator is moving upwards and shows a reading of 65, the highest since November 2021.
If the increase continues, the closest resistance area in this timeframe will be at $46, 45% above the current price.
Despite this bullish SOL price prediction, a weekly close below the $28 horizontal resistance area will invalidate the breakout.
In that case, a nearly 40% drop to a long-term ascending support line at $20 could occur.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
