Solana has grown by more than 15% in the last week. Nonetheless, the Layer 1 network has yet to overcome resistance. Cutting through $93 might result in an increase of $120.
Solana has hit a critical resistance level as it tries to catch up to other Layer 1 currencies like Avalanche, which have risen by more than 35% in the last week. Several technical signs point to SOL perhaps poised to break out.
Solana looks to be on the verge of a breakout, as its price movement is sending out many positive indications.
Over the last week, the market value of the Layer 1 network’s SOL token has increased by more than 15%, taking it to the $93 resistance level. This stumbling block is crucial for Solana since it is located near the descending trendline of a wedge that has been building on the company’s daily chart.
A decisive candlestick close over $93 may indicate a breakout from the consolidation pattern. In such a case, sidelined investors may re-enter the market, sending SOL up by nearly 34% to $120.
Within the same timeframe, SOL’s price looks to be forming a positive divergence versus the Relative Strength Index. While Solana has been reaching lower lows, the RSI has been making higher highs. Such market activity suggests increasing upward momentum, lending weight to the bullish forecast.
Still, Solana will most likely require a daily closing over $93 to prove the bullish argument. If it fails to break through this resistance level, the asset may decline to the wedge’s descending trendline at $75.
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