Solana (SOL) price has made an impressive 21% rally in the last seven days, but the recent FTX unlocks have caused uncertainty about whether the altcoin can break $200. Amid the uncertainty, three chart patterns featuring different metrics have emerged, suggesting that SOL will likely breach this psychological level soon and possibly target all-time highs.
Solana Price Today as Bulls Face Resistance at $179
SOL price trades at $175 at press time after a slight 0.5% gain in 24 hours. During this time, SOL reached an intraday high of $179, which also doubles as a critical resistance level, before falling back to range-bound trading.
Solana faced rejection at $179 after reports that the FTX unlocked 187,600 SOL tokens, valued at $32.79 million, from its staking account. The unlocked tokens caused uncertainty about looming selling activity that may impact SOL.
However, Solana’s gains will likely continue as crypto prices today remain bullish, with Bitcoin (BTC) briefly crossing above $105,000. Moreover, 3 charts suggest that SOL will likely resume the uptrend to overcome resistance at $179 and surpass $200.
Looming Breakout From Ascending Channel
One of the charts that explains why the price of Solana can breach the $179 resistance level and reach $200 is the daily chart that shows a looming breakout from an ascending parallel channel. At press time, SOL was testing resistance at the upward sloping resistance line, and if it can break this level, it will surge to $219.
Technical indicators on the above daily price chart also suggest that a Solana breakout past $180 and a rally to $200 could happen. The RSI has risen and reached 72, which shows a strong bullish momentum and room for more growth as the coin is yet to be overbought. The 20-day SMA is also tipping north and is targeting a crossover with the 200-day EMA, and if this happens, it will support Solana gains past $200.
Weekly Active SOL Addresses Hit 3-Month High
The daily active address chart from Artemis also shows why it is possible for the Solana price to reach $200 soon, despite the recent $32M unlocks by the bankrupt FTX and Alameda estate. This metric recently rose past 5.1 million, marking the highest level since mid-February.
The increase in weekly active addresses highlights an uptick in user demand and network activity, which can often precede a significant price move for a token. The high address count also shows increased user engagement and increased liquidity to enable an upward trend.
Solana Price Tracks Global Liquidity
The global liquidity index chart further explains why the Solana price has the potential to move past $200 and even reclaim new highs. Analyst curb.sol noted that SOL has been tracking global liquidity, suggesting that this token may not only rise past $200 but also aim for $400.
Looking at previous trends, it is clear that SOL tends to rise when global liquidity, a metric used to measure the amount of money available in circulation, also rises. This supports a bullish Solana price forecast and the likelihood that it may soon surpass the $200 level.
Therefore, going by the three charts: daily price chart showing a looming breakout, weekly active addresses, and the surging global liquidity, it is clear that Solana can reach $200 after overcoming resistance at $179. If SOL surpassed this psychological threshold, it may move towards all-time highs.
The post 3 Charts Explain Why Solana Price Could Reach $200 Despite $32M FTX Unlocks appeared first on CoinGape.