Solana's digital asset SOL experienced a notable increase followed by a decrease in market price, moving from values above $210 to below $200. Currently, SOL has stabilized around $197. The question arises whether SOL can reach new record highs from its current position.

Evaluation of Market Trends for Solana

Following the breakthrough of the $195 resistance level, Solana's trading price has stayed above the 100-day moving average, indicating potential for an upward trend. Analysts suggest that if this trend continues, SOL may surpass the crucial $210 mark and achieve new milestones in the near future.

Technical analysis utilizing the RSI indicator shows that SOL is solidly within the bullish zone, suggesting further potential for gains. Additionally, the MACD indicator supports this positive outlook, as all related lines are above the zero mark, reinforcing the bullish sentiment.

Potential Challenges for SOL Moving Forward

Although the buyer's market appears strong based on the bull and bear power histogram, uncertainties persist regarding the sustainability of SOL's upward trajectory. Failure to break through the $210 resistance level could result in a pullback towards the $162 support level, potentially initiating a broader downtrend.

Solana's token, SOL, derives value from its transactional use within the network, particularly in meme coins. The cryptocurrency's performance will likely be impacted by the level of network activity. Continued high usage of the Solana network could pave the way for SOL to reach new price highs.

The original post can be found on BH NEWS.