Solana is on a bullish streak, breaking out of its descending top line barrier below $200 and hitting the monthly resistance level at $206.73.
It is now approaching the next target at $219.75, and could be on track for surge to $270, FX Street noted.
As per Coindesk, the digital token has further soared 3.07 percent in the last 24 hours to reach $208.65 on Monday night.
SOL's rally came after it reached rising levels of the 50-day Simple Moving Average, which provided support in prior occasions. Bullish traders broke above this monthly pivot on Wednesday, which pushed the rally that led to its above $200 level.
Solana Price Performance Outstanding This 2021, Seen to Grow Further in 2022
The token's price performance has been outstanding this year, and such a trend is seen to continue in 2022, FX Street further reported in a separate article.
Bullish sentiment for SOL has existed since its inception, with such big names as FTX's Alameda Research and CMS Holdings supporting and investing in the cryptocurrency. Adoption has also expanded, as SOL has been included in investor portfolios such as Multicoin Capital and Sino Capital. These investors are supporting Solana with an "Ethereum-killer" narrative that has boosted the coin's returns over the past eight months.
Solana has been considered as a worthy alternative to Ethereum, with its support for decentralized finance (DeFi) apps that has since drew ETH users away from the blockchain. Such support has made SOL an attractive investment, but this is only half the reason why it is breaking out.
It's anticipated bull run in the remainder of the year could also lead to an exponential rally for other altcoins. As such, FX Street expects bigger buying for SOL to take place in the next months that should provide tailwind to the SOL price seen to reach record-breaking levels.
Solana Correction Expected Before Hitting All-Time Highs
Solana price reached beyond its monthly R1 resistance level at $206.91. With this milestone, new buyers were attracted leading to a prospective lift towards $219.75, reaching all-time highs.
Its Relative Strength Index (RSI) is now in overbought territory, showing that the token could take a short rest from its rally before it could climb higher. After this correction, investors should expect the resistance level to turn into support. Such support should allow the uptrend to continue, with new buyers joining the rally and making SOL attain its next price target of around $272.17.
Hitting both R1 and the record-breaking highs may offer SOL price with a double band of support in the $206 to $219 area, FX Street emphasized in a separate advice. This will make bulls defend and use it as an entry-level every time SOL could drop to such prices before breaking out further towards the monthly R2 resistance level at around $272.17.
If bulls do not hold the Solana price support at the R1 resistance level, bears could overturn this rally and cause it to slide to its monthly pivot point at around $155.87. In the event that global market sentiment forces traders and investors to reduce their risk exposure and protect their capital, bulls could withdraw, leading them to break below the 55-day SMA towards $120.
