Key takeaways
SOL is up 7% within the final 24 hours and is now buying and selling above $220.
The coin might rally in the direction of the $240 resistance because the broader market bounces again from current lows.
SOL tops the $220 resistance stage
The cryptocurrency market has turned issues round following a poor begin to the week. Bitcoin, the main cryptocurrency by market cap, hit the $119k stage a number of hours in the past, permitting altcoins to rally larger.
Solana’s SOL added greater than 7% to its worth within the final 24 hours, making it the second-best performer among the many high 10 cryptocurrencies by market cap. SOL’s rally is fueled by Circle’s tokenized U.S. Treasury fund, USYC, launched on the Solana blockchain. This launch signifies that USYC has expanded past the Ethereum, Close to, Base, and Canton networks.
USYC has a $630M market cap, making it the fifth-largest tokenized treasury providing. Its launch on Solana might enhance the adoption of SOL amongst institutional traders. The mixing on Solana provides new potential use instances for USYC, together with utilizing the tokenized treasury as margin collateral for derivatives buying and selling or as a yield-bearing asset in Solana-based DeFi platforms.
SOL targets $240 as rally continues
The SOL/USD 4-hour chart has switched bullish after the coin rallied over the past 24 hours. The coin has damaged above the $220 resistance stage and is now buying and selling at $224 per coin.
The momentum indicators have additionally switched bullish. The RSI of 70 exhibits that patrons are in management, and if it rallies larger, the RSI might enter the overbought area. The MACD traces are additionally throughout the constructive area, suggesting a bullish bias.
If the rally continues, SOL might surge in the direction of the subsequent main resistance stage at $241. Nonetheless, the SOL/USD 4-hour chart is inefficient, which might see it seize liquidity round $214 earlier than rallying larger.
On the flip facet, if the market undergoes a correction after its current rally, SOL might retest the assist and TLQ stage at $205. The bulls would defend this stage, as shedding it might see SOL dip beneath $200.
