Solana (SOL) Support Zone at $183 Strengthens, $300 Target Within Reach

Key Takeaways

• Solana’s price has risen above $200 again, thanks to the support held at $183.
• The OBV shows rising accumulation, indicating that the price could trade higher.
• Bullish crossover with positive MACD hint at rally ward a new all-time high.

After reaching a new high in Nov. 2024, Solana’s (SOL) price failed to retest at $264. Selling pressure hit the altcoin, and the price dropped below $170 on Jan. 13.

But four days after reaching that point, the SOL price is back above $200 amid an improved market condition. Market participants might want to know whether this recovery will last or not.

In this analysis, CCN expatiates on the cryptocurrency’s potential with several indicators aligning with the same bias.

Indicators Support Extended Uptrend

Analysis of the daily chart shows that Solana’s price rebounded after holding support at $183 on Jan. 14. SOL had previously fallen below this support in December but jumped to $218 some days after.

Later, it faced resistance, sending the price down to $169. Compared to its performance at that time, the SOL/USD chart reveals that the cryptocurrency is unlikely to experience a correction in the short term.

One reason for this forecast is the on-Balance Volume (OBV). The OBV measures the volume around a cryptocurrency to detect whether the price will continue to trend upwards or downwards.

When the reading increases, it means there is an increase in buying pressure, and the price might jump. On the other hand, a decline in the OBV indicates rising selling pressure, which is bearish.

As shown above, the OBV has climbed from the Jan. 9 lows. If sustained, the cryptocurrency could trade higher than $217 soon.

SOL Price Prediction: New All-Time High in Sight

On the same timeframe, the Parabolic Stop And Reverse Indicator (SAR) dotted line is not more than the SOL price. Instead, it is now below it.

The Parabolic SAR is an indicator that identifies an asset’s price direction and shows whether the current direction might reverse. When the dotted lines of the indicator are above the price, it indicates resistance, and the price might decline.

However, in this case, the dots below indicate that the SOL price has maintained stronger support to keep rising.

Beyond that, the Moving Average Convergence Divergence is also positive. The MACD uses the difference between the 12 and 26-period Exponential Moving Averages (EMA) to measure momentum.

The trend is bearish when the 26 EMA (orange) crosses below the 12 EMA (blue). However, the trend is bullish since the shorter EMA has risen above the longer one.

As such, the Solana price might experience an extended uptrend. Should the token hold on to the current trend, SOL might rally to $264.63. Reaching this level might also be a prerequisite for hitting $300, which would represent a new all-time high.

Alternatively, if SOL drops below the $183 support which is also the 0.382 Fibonacci level, this prediction might not happen. Instead, the token’s value might drop to $163.71.