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Solana drifted upwards throughout the weekend, aggressively defending the 200-day moving average.
Solana (SOL) rose for three straight days, reaching a high of $210, its highest level since Feb. 5. It remains about 30% below its highest level in December.
Solana’s slow recovery was likely because of the rebound of some of its ecosystem tokens. Fartcoin (FARTCOIN) rose by almost 30% from its lowest level this month. Similarly, Popcat (POPCAT) token has risen by over 80% from its February lows.
The other top-performing Solana meme coins were ai16z, Cat in a dogs world, and Comedian, which rose by over 10%. According to CoinGecko, the market cap of all coins rallied 7.3% in the last 24 hours to over $11.98 billion. These meme coins had a market valuation of over $25 billion.
Solana has become one of the most successful crypto projects this year as its ecosystem boomed. TokenTerminal data shows that Solana has made over $282 million this year, making it the fourth-biggest player in the crypto industry after Tether, Tron, and Jito.
Its DEX networks like Raydium, Meteora, Orca, and Jupiter have continued gaining market share in the past few years.
There are also signs that the Securities and Exchange Commission will approve a spot SOL ETF. Odds of this approval have jumped to 85%, with investors anticipating that Trump’s SEC will be different from the previous one.
Solana price analysis
The daily chart shows that the SOL price bottomed at $190 last week as most cryptocurrencies crashed. This was an important level because it was at the 200-day Exponential Moving Average.
Bulls are defending moves below this level since it would be a victory for the bears and would point to more downside. The bull and bear power indicator has moved upwards in the last two straight days.
A drop below the 200-day moving average would risk it moving below $169, the neckline of the double-top pattern at $265. A double-top is a highly popular bearish sign in the market.
Therefore, the short-term SOL price forecast is neutral for now. More downside will be confirmed if it crashes below $169, while a clear bullish breakout will be validated if the coin rises above the key resistance at $265.
Such a move would confirm the recent VanEck forecast that the coin will jump to $520.
This article first appeared at crypto.news
