Solana Price Prediction: SOL Could Target $120 If It Breaks This Resistance

Solana (SOL) has gone up by 3.7% in the past 24 hours and is currently hovering above the $90 level – a key resistance that, if broken, could unleash a strong rally for this altcoin.

Trading volumes jumped by 23% during this period and currently sit at $5 billion, accounting for nearly 10% of the asset’s circulating market cap.

Nearly $300 million worth of short positions have been blown up in the past 24 hours as well, indicating that this rising buying pressure is already taking out big volumes of short positions.

We have emphasized in previous Solana price predictions that a short squeeze is highly likely if SOL manages to climb past this $90 sell wall.

High Network Usage Plus Improved Sentiment Could Lift Solana

According to on-chain data from Artemis. Solana’s network has experienced a spike in transaction volumes in the past few months. The network processed a peak of 959 million transactions during the week ended on February 8.

As of last week, usage was still sitting at high levels with weekly transaction volumes closing the period at 882 million – just 8% below that recent record.

Higher usage has often preceded a strong recovery in the price of SOL, as demand for the altcoin, the network’s settlement asset, tends to increase.

That said, market sentiment has been overly depressed lately, which has probably put a lid on the token’s upside potential.

Now that we are seeing a significant improvement in sentiment, we might expect an increase in crypto prices as a whole.

The Fear and Greed Index has risen from a record low of 5 recently to 34 at the time of writing, indicating that we are almost out of “Fear” season and into “Neutral” territory. These kinds of recovery from record lows to neutral have often been accompanied by price increases in the near term.

Positive Momentum Spikes as SOL Breaks Above $90

The 4-hour chart shows that a rising price channel has been forming since the end of February. Positive momentum has also climbed to levels that indicate increased buying pressure.

Solana needs to break out of the $90 resistance and will likely aim to hit $100 in the short term if that happens. This would mean a breakout from the consolidation pattern that has formed in the past month as well.

As we highlighted in previous articles, our near-term target for the token is the $120 level, followed by a stronger move to $136 if bullish momentum accelerates.

The Relative Strength Index (RSI) in this lower time frame currently sits at 67, already confirming that bulls are on the move.

Potential 4.5x Trade Ahead If SOL Stays Above $88

Heading to the hourly chart, we got a buy signal yesterday, right after the American session started. These are “decisional” candles that tend to indicate institutional and whale participation in specific price moves.

Moving forward, the $88 level could be the key support to watch in case of a pullback. If demand rises as the price hits this mark, it could open up an attractive trading opportunity with a target set at $98 and a stop price below this specific level.

A long position with those parameters would offer a risk-reward ratio of around 4.5x.