Solana (SOL) is another altcoin within the crypto sphere that has been witnessing astonishing gains over the last few months, reaching new all-time highs near $260.
The DeFi hype is another one that it’s on fire alongside NFTs and the meme coins, which had triggered massive buying interest across such tokens, boosting SOL’s prices towards the neighborhood of $250 as of press time.
At the end of last month, the cryptocurrency fell to test the 50-period simple moving average at the H4 chart, gathering bullish momentum to embrace another bull-run after a short period of stagnation between the $210 and $190 levels.
That said, SOL is looking to refresh its all-time highs to crack above $260 and enter a discovery zone, targeting the critical handle of $300 in a first degree.
Bullish Double Cycle?
From a broad perspective, the price is developing a double cycle that it’s being replicated from the one finished at the peak of September 2021, where it started to retrace towards the 50-day simple moving average.
That’s why Solana’s coin has enough room to rise further towards $300 and bolster bulls in the long term within the context of a wider bullish construction, as it keeps forming higher highs and higher lows sequence.
However, the bearish outlook could strengthen once SOL takes offers at the current stage once it breaks below the critical level of $230, where the support zone formed on November 5 lies, opening the doors for a decline towards the $220 area.
But There Is A Catch…
Moreover, around $230, the 50-period SMA mentioned above at the H4 chart also acts as a dynamic support.
If the selling pressure increases further, the next hurdle to overcome would be the psychological level of $200, which is also the latest barrier ahead of the 200-period simple moving average, which acts as a dynamic support across the board.
Still, the RSI indicator stays within the positive territory, favoring the buyers in the short term and paving the way for further rallies once it pierces above $260.