Solana (SOL) has rebounded from recent setbacks with a robust rally that kicked off on July 12, boosting its value by 13%. Currently trading at $152, Solana ranks as the fifth-largest cryptocurrency by market cap, returning to its price levels from June 27 when VanEck announced plans to offer a Solana-based exchange-traded fund (ETF).
The past three days have seen Solana surpass crucial technical benchmarks, notably closing above its 50-day simple moving average (SMA) and previously breaking through the 20-day exponential moving average (EMA) on July 6. The 50-day SMA represents the average closing price over the last 50 days. Crossing above this level typically signals a bullish turn in market sentiment and a potential continuation of the price rally.
Moreover, surpassing both the 50-day SMA and the 20-day EMA indicates a strong bullish control, as Solana’s price now exceeds both the medium-term and short-term averages.
Additionally, the Relative Strength Index (RSI), currently at 59.26, shows a prevailing buying interest over selling, indicating a healthy uptrend. The RSI is crucial for gauging market dynamics, suggesting that traders are more inclined to purchase SOL rather than sell.
In the last week alone, SOL’s price has increased by 8%, likely fueled by optimism surrounding the potential ETF offerings. Just a week prior, the Chicago Board Options Exchange (CBOE) submitted a request to the SEC to list potential spot Solana ETFs developed by VanEck and 21Shares.
The Elder-Ray Index, which assesses buyer and seller strength, currently stands above zero at 16.05, further supporting the bullish sentiment in the market. Additionally, the Awesome Oscillator shows a positive trend with upward-facing green bars, indicating growing bullish momentum. This suggests that the short-term SMA is increasing more rapidly than the long-term SMA, amplifying the buying pressure.
Given these strong indicators, if the current buying momentum continues, Solana could potentially surpass the $153 mark, signaling a promising outlook for its near future.
