Bitcoin has recently made a significant surge, nearing $100K with a more than 6% increase just before Christmas. This surge has sent bullish signals across the markets, leading to a rise in most altcoins within a bullish pattern. Solana’s price has broken its bearish trend after hitting a key support level. Following a brief consolidation, it has started a strong upward movement within the bullish zone. However, there are concerns about the continued upward pressure on the price.
The price of SOL experienced a decent pullback, causing the token to drop out of the top 5 cryptocurrencies by market capitalization. Nevertheless, there are expectations for a strong bullish momentum as the token has entered the bullish range after bouncing back from the key support level. This indicates that the price is gearing up for another upward movement towards new highs.
The recent bounce from the crucial support at the 200-day EMA indicates increased activity from the bulls in preventing further price declines. Additionally, the RSI has rebounded after reaching a low point, which could help sustain the rally momentum. However, there has been a significant drop in volume, raising some concerns about future price movements.
With the bounce, the SOL price has entered the bullish range above the ascending trend line, which has been a strong support level. As long as the price remains within this range, the likelihood of an extended uptrend remains high. If there is a bearish pullback, the 200-day EMA could act as a strong support and trigger another rebound. Following the rebound from the support confluence, it is expected that the Solana (SOL) price will continue to rise and reclaim the $300 levels in the early days of 2025.
