Solana (SOL) has made a notable move in the market, climbing above $190 for the first time in five months following a 5.63% price increase on July 21. This surge has brought the token within striking distance of the $200 mark, a level that traders have been watching closely. Technical indicators suggest that a golden cross may be forming, which could provide the momentum needed for a sustained rally.
A golden cross occurs when the 50-day exponential moving average crosses above the 200-day EMA. This pattern is widely regarded as a bullish signal, indicating that short-term momentum is gaining strength and may continue. This development comes just four months after Solana experienced a death cross, which led to a steep decline from $184 to a low of $95 in early April. The reversal of this bearish pattern into a golden cross suggests that Solana may be poised for a strong recovery.
If the current trend holds, the next major price target for SOL is the 161.8% Fibonacci level at $245. Reaching this milestone would represent a 30% gain from current levels. Should buying pressure remain strong, Solana could even challenge its previous all-time high of $294 and potentially surpass the $300 threshold for the first time.
However, for this bullish scenario to unfold, Solana must first overcome a key resistance zone between $194 and $199. Market indicators such as the Average Directional Index (ADX) show that bullish traders are currently in control, increasing the likelihood of a breakout above this critical range.
Adding to the optimism is a recent report from 21Shares, a leading digital asset investment firm. The company has expressed strong confidence in Solana’s potential to outperform Ethereum in terms of network growth and market share. According to 21Shares, institutional interest in Solana is rising, with firms like DeFi Development Corp actively accumulating SOL. The report also suggests that Solana’s total value locked (TVL) could exceed its previous record of $11.75 billion, further reinforcing its bullish outlook.
With technical signals aligning and institutional sentiment turning positive, Solana appears to be entering a pivotal phase. If momentum continues, a rally toward $245 and beyond could be well within reach.
It’s important to note that cryptocurrency remains an unregulated digital asset, not recognized as legal tender, and is subject to market risks. The information provided should not be considered financial or trading advice. CryptoNow holds no responsibility for any investment decisions made based on the content of this article.
