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Solana (SOL) has risen by over 4.5% in the last 24 hours as the asset rebounds amid positive sentiment. This coincides with the confirmation of a golden cross on the four-hours chart of the coin, accoreing to Tradingview data.
Solana’s golden cross signals possible bullish breakout
The formation of a golden cross signals that a bullish rally could occur for Solana, which breached the $200 resistance in a swift move within the last 24 hours.
For clarity, a golden cross is set when a short-term moving average crosses above a long-term moving average. For Solana, the 9-day and 26-day moving averages crossed on the four-hour chart at $200.68, a development that could further catalyze the price outlook.
As of press time, Solana is changing hands at $203.44, which represents a 5.21% increase in price. The coin had previously hit a peak of $208.33, indicating that it has the potential for more growth if only volume lends its support.
The trading volume has remained in the red zone by a significant 19.87% at $10.8 billion. The market feedback shows that while there has been an increase in institutional demand, retail investors are still cautious.
The institutional interest might be as a result of the approaching deadline for the U.S. Securities and Exchange Commission (SEC) in considering a Solana ETF. The regulatory body has until Oct. 16 to decide on pending applications filed by different asset managers for a spot Solana exchange-traded fund (ETF).
Has Solana’s price finally bottomed out?
With these bullish sentiments buzzing in the Solana community, it appears the asset’s price has bottomed out. The golden cross formation at $200.68 might become new support for the coin.
This is likely if the trading volume receives a kick and clears the red zone into the green amid this bullish sentiment.
It is worth mentioning that if the SEC gives the green light for a spot Solana ETF, the increased institutional exposure could impact the price. There are projections that if SOL could reclaim the $230 price level and stabilize there, it might soar toward $520.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team