Solana Trades Higher Wednesday Morning — Is A $200 Breakout On The Horizon?

Solana SOL/USD fell somewhat in the early hours of Wednesday, but not before reaching a nearly three-month high.

What happened: The fifth-largest cryptocurrency by market capitalization soared to $184.72, the highest it has been since Feb. 18, before easing to around $180.

SOL gained over 5% in the last 24 hours, while its trading volume dipped 4.97%.

Investments in the derivatives market also soared. Open Interest in SOL futures and options rose 9% to $7.48 billion, the highest since Jan. 23, according to Coinglass.

Moreover, over 63% of derivatives traders on Binance with open SOL positions were positioned long, suggesting that the rally may continue.

Cryptocurrency trader and analyst Crypto Sensei noted that SOL was facing short-term resistance around $180.

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"Now, next stop seems to be $200 on the 1-day time frame, where a pullback is expected," the analyst predicted.

The crucial Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Buy” signal for SOL, according to TradingView.

On the other hand, the Commodity Channel Index, which measures the difference between the current price and the historical average price, indicated that the asset was overbought, predicting a downside.

Price Action: At the time of writing, SOL was exchanging hands at $177.94, up 5.05% in the last 24 hours, according to data from Benzinga Pro.

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