After dipping below $100 in recent days, Solana (SOL) has managed to recover. The coin has moved past this important psychological point and it is likely that the momentum we have seen will continue in the coming days. Here are the main takeaways:
Solana (SOL) is aiming for a decisive bullish breakout.
The coin is expected to be 100-day SMA. to test
It has established a bullish trendline for the past few days that could yield higher returns.
Data source: Tradingview
How long can SOL stay above $100?
The $100 mark has often been the most important psychological figure for SOL bulls. In fact, it was a huge relief to watch the coin go by. But how long can SOL stay up there? Well, it will depend on several important factors. First, the recent surge has seen the altcoin break past the crucial $105 resistance zone.
The goal for bulls will now be to turn this resistance into support. If SOL is able to close out the day above $105, it is likely that we will see a sustained period above $100. Right now, the SOL is slightly above this price, rising around 7% in the past 24 hours.
Nevertheless, downside risks remain. If the SOL falls below $105 and no leg moves up, we could see more weakness. Eventually, the coin will bottom at the next $95 support before attempting to rise again.
Why is SOL a good buy now?
Well, even with the short-term downside risk facing SOL, it still remains a pretty decent altcoin to buy. Any long-term crypto investor should seriously consider Solana. But for the short term, if you don’t want to take any risk, wait a few days to see how the altcoin holds up above $105.