Popular altcoin Solana is up more than 15% in the past week.
Yet the Tier 1 network has not yet overcome the resistance.
Breaking $93 could result in a rally to $120.
Solana has reached a crucial level of resistance as it tries to catch up with other Tier 1 cryptocurrencies like Avalanche, which has risen more than 35% over the past week. A few technical indicators suggest SOL may be ready to explode.
Solana prepares to rally: These levels can happen!
Solana seems on the verge of breaking as price action has given multiple bullish signals. The SOL token of the Tier 1 network saw a more than 15% increase in market capitalization last week to test the $93 resistance level. This hurdle is important to Solana because it sits around the descending trendline of a wedge formed on the daily chart.
A decisive candlestick above $93 could signal a breakout from the consolidation pattern. Under these circumstances, marginal investors could re-enter the market and push Solana up about 34% to $120. It is worth noting that the price of the SOL formed a bullish divergence against the Relative Strength Index over the same time frame. Solana is making a series of low lows, while the RSI is making a series of high highs. This type of market behavior adds confidence to the optimistic outlook, signaling rising momentum, according to analysts.
SOL may also experience a correction to $75 levels!
Still, Solana will likely need a sustained daily close above $93 to confirm its bullish thesis. If it fails to break this resistance level, it could correct a correction on the descending trendline of the SOL wedge to the $75 levels.