Can Solana (SOL) Break Through $250? Analysts Weigh In

Solana (SOL) is ready to stage a turnaround, with analyst Ali Martinez stating that current prices offer a chance to accumulate.
Solana NFT sales have hit a record high as the Solana co-founder points out a link between Solana and Bitcoin creator Satoshi Nakamoto.

Ethereum rival Solana (SOL) is poised for an upswing in the coming weeks as the altcoin begins to generate investor interest. Prominent crypto analyst Ali Martinez has pointed out some technical indicators that point to SOL rallying. The analyst highlights the TD Sequential indicator, a leading trend reversal indicator, which presents a buy signal.

Bolstering this indicator is the Moving Average Convergence Divergence (MACD) indicator, which is in positive territory, a bullish signal.

The TD Sequential indicator presents a buy signal on the #Solana daily chart, suggesting a potential upswing that could span one to four daily candlesticks for $SOL. pic.twitter.com/LR0I9Y2diu

— Ali (@ali_charts) February 24, 2024

At the time of writing, SOL is trading at $106 after a 6% surge in the last 24 hours. This coincides with a wider market rally. The rally helped the altcoin recover some of its weekly losses, and it is now down by a little over 2%.

The technical setup coincides with network growth. As CNF reported, NFTs on Solana recently hit the $5 billion landmark in all-time trading volume, with buyers exceeding 2.2 million. For context, OpenSea was clearing over $3 billion a month during the 2021 NFT hype season. The latest figures from Solana not only demonstrate the strength of the Solana ecosystem but also signal the return of NFTs.

However, Martinez has warned about the upward journey being rocky. The altcoin faces a few key resistance levels that require bulls to break. Similarly, bulls need to ensure that the altcoin can remain above key supports. Crucial resistance stands at $115, while strong support is at the $100 level.

The Relative Strength Index (RSI), which measures market momentum and advises investors whether an asset is overbought or oversold, currently sits below 50, indicating a bearish sentiment. This could lead to some hesitance from the bulls.

Further weakening the project’s outlook are investor jitters after the network recently suffered an outage after nearly a year of smooth running. While this was blamed on a bug and quickly fixed, this event remains a concern for investors, especially institutional investors.

Some analysts see potential for Solana (SOL) to climb back to its $250 peak, or even breach $300, considering an average entry point of $115. This could translate to a potential tripling of its market value by year-end.

Solana Co-founder Makes Interesting Satoshi Connection

Highlighting the recently released emails between Adam Back and Satoshi Nakamoto, the inventor of Bitcoin, Solana co-founder Anatoly Yakovenko, shared a cryptic post on the X platform. The co-founder suggests that Satoshi also invented Solana because of the references to bandwidth, speed, low cost, and computing power.

Satoshi also invented solana. She just did a much better job covering up her tracks this time. The truth is out there https://t.co/bjfcGsHqOl

— toly (@aeyakovenko) February 24, 2024