A foothold above $105 has set Solana on course to achieve an additional 25% jump provided a throwback plays out as expected. It will be interesting to see whether bulls can carry forward the momentum after Solana’s ORCA and FIDA became the first non-Ethereum based tokens to be listed on exchange platform Coinbase. Upside was limited to the 4-hour 200-SMA (green) floating around the $130-mark. At the time of writing, SOL traded at $107, up by 17% over the last 24 hours.
Solana 4-hour Time Frame
Solana currently sat at a 9-day high after an ascending triangle breakout asserted its value above $105 for the first time since 22 January’s flash crash. A 125% bump up in trading volumes captured the buying frenzy as SOL smashed past the 38.2% Fibonacci level (calculated through a decline from $144 to $80.6). A successful throwback and rebound from $105 would confirm an optimistic outlook and prompt a more organic rally. The disbalance between buyers and sellers up to $130 can push SOL by an additional 25% over the next few days.
Once traders cash in their gains at the 78.6% Fibonacci level and 4-hour 200-SMA (green), SOL would likely head back to its daily demand zone between $81-$66.6 as part of a larger downtrend.
The mass hysteria surrounding SOL would likely discount overbought readings on the 4-hour RSI. However, two lower peaks or a bearish divergence above 75 would be a sign of bullish weakness.
Meanwhile, SOL’s breakout pushed its 4-hour MACD to a 2-wk high. No immediate hurdles were present after the index climbed above the equilibrium mark.
Bullish momentum is expected to push SOL to $130 before the week closes. Investors can grab SOL at its current price and set their take-profit at the 78.6% Fibonacci level. The hypothetical setup would be negated if the price slips below $100.