SOL Price Approaches Major Resistance Around $181 Amid Altcoin FOMO
Solana (SOL) has been on a steady rise recently, following the upward trajectory of Bitcoin (BTC) and Ethereum (ETH) in the past few days. The large-cap altcoin, with a fully diluted valuation of approximately $89.8 billion and a 24-hour average trading volume of around $8.8 billion, saw a 17 percent increase in the past week to reach $173 on Friday, May 9, during the later North American trading session.
As a result of the increased volatility, Solana’s leveraged market experienced a net liquidation of about $31 million in the past 24 hours. Additionally, on-chain liquidations on native perpetual exchanges for Solana reached over $47 million in the same timeframe, raising the possibility of a short squeeze.
The Solana network has been attracting significant investment from institutional investors, with Sol Strategies leading the way in recent quarters. The growth of memecoins within the Solana network has contributed to an increase in its total value locked to over $8.7 billion.
Several fund managers are reportedly looking to offer spot Solana ETFs in the United States, indicating a growing interest in the cryptocurrency. Furthermore, the U.S. Securities and Exchange Commission (SEC) has shown a more favorable stance towards cryptocurrencies under the current administration compared to previous years.
From a technical perspective, Solana’s price is currently showing bullish momentum. In the 2-hour timeframe, the SOL price successfully rebounded from a breakout of a falling logarithmic trend. The MACD line has crossed above the zero line, and the Relative Strength Index (RSI) is above the 70 percent level, indicating a potential uptrend.
The midterm target for SOL price is set at $187 and $240, with further bullish confirmation expected once the altcoin crosses above the 200-day Moving Average Simple (SMA). Overall, Solana’s price movement is reflective of the broader market sentiment, with potential for further gains in the near future.
