Solana Price Eyes $187 as Bullish Breakout Gains Momentum

Solana Builds Bullish Momentum as Price Targets Key $187 Level

Solana (SOL) price has surged once again, climbing back above the $175 mark after dipping to $157 in early August. This renewed strength follows a bounce from the $155 support level, signaling a potential bullish reversal after weeks of downward pressure.

Solana price had previously reached a new peak of $206 at the end of July, which had raised hopes that a retest of the record price was possible. But that pushing power tailed off, and the price slipped sharply. The fact that it has broken out of a long-range consolidation recently can signal that there is a change of its sentiment, where bulls are now in control.

The 24-hour trading volume of Solana price has also increased drastically, by about 47% to stand at $6.52 billion. This increased amount authenticated the existing movement and reinforced the prospect of future price increase within a short period.

Solana Price Breaks Out, Targets $187 Rally

Crypto analyst Ali has indicated that the Solana price may be in the early stages of a bullish breakout.

As per his recent chart evaluation, SOL has breached a descending channel. This breakout pattern has most of the time been an indicator of market sentiment shift to the buying pressure. Bulls are taking over the price action which could be a signal to the current decline.

The chart of Ali, reveals that there is a forecast of a shift towards the level of $187. This is an objective that correlates with major Fibonacci retracement levels and resistance points. In case of the ongoing momentum, this price point might be seen within the next several days or weeks.

The Solana derivatives market has seen a significant increase, indicating restoration of investor confidence and trading on the platform.

According to the recent market figures, the volume of derivatives of Solana has grown by an impressive 32.36% to a large figure of 23.64 billion. Such a significant increase is representative of increased trading interest and possible increased magnitude of momentum within leveraged positions.

Source: Coinglass

The open interest increase was also witnessed as it increased by $3.07 to reach 9.80 billion. This depicts a consistent capital inflow and implies traders are not closing out their accounts.

The surge in volume along with the propped open interest indicate the high level of activity on SOL derivatives arena.

SOL Price Eyes Breakout as Bulls Target $200

At the time of writing, the SOL price is trading at $175.68, marking a modest gain of 6% in the last 4 hours.

The chart shows that SOL has been going in an uptrend in a small ascending channel. This is a bullish sign of put pressure to buy. The price however is currently trading nearly above the $180 resistance limit and this may cause a hindrance in the immediate or short term.

The Relative Strength Index (RSI) is now standing at 60.61. This rate indicates that the momentum is bullish, but it is getting near overbuying levels.

Source: Tradingview

The MACD line is above the signal line and this is also a bullish bias. But the histogram is losing momentum which is a potential indication of a correction or consolidation.

In case bulls succeed in breaking the $180 mark, the next one is at the mark of $190, and the mark of $200. Otherwise, failure to do that can attract sellers, and this can force the price back to $170 or below.