Despite current market conditions, Solana prices remain fairly strong. Despite traders significantly shifting their focus away from the token, the price continues to trade within a bullish range. This indicates that SOL price could soon start a nice uptrend after trading reverts to a positive direction.
Now a question arises: If bulls push the price higher, can SOL stay above $200?
The current trading setup indicates that the token has entered a critical phase where both a bullish reversal and a bearish continuation are possible. The technical aspect is neutral, meaning that the token can follow the direction of the induced trading volume. Volumes are now significantly reduced, which means massive compression, which could in turn lead to massive expansion.
As mentioned above, SOL price reached an interesting intersection after remaining level for over a month. The bulls are bullish and that is why the levels remain consolidated within the main resistance area. The bears’ failed attempt to push levels below this area indicates the bulls’ growing dominance. Taking technical aspects into account, DMI is neutral as +Di, -Di and ADX have converged to a point that indicates significant price action could follow. Moreover, RSI just flashed a bullish divergence proving the bullish argument.
Does this confirm the uptrend reaching $250?
SOL price has maintained ample strength for over a month, but the recent bounce from lower support substantiates the bullish argument. There are two major hurdles before hitting $250 highs. One is $218 and the other is $243. The price is unable to rise above $205 as the bears have limited the rally below $200. Now that the token is under extreme pressure, we suspect a significant price rise will follow.
Therefore, to reach $250, Solana price must remain above the first target of $218. If the bulls hold the price above this level, SOL price is believed to trigger a nice bullish order targeting higher.