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Solana (SOL) has revived the hopes of investors after the asset confirmed a golden cross on its hourly chart. This coincides with an uptick in price for SOL as the coin breached the $90 resistance level to sustain its ongoing bull rally.
Strong Solana on-chain activity boosts investor confidence
The confirmation of a golden cross signals a bullish outlook for an asset. The indicator appears when a short-term moving average crosses above a longer-term average.
With Solana confirming a golden cross amid increased metrics of price and volume, traders are anticipating a sustained rally as March draws to a close.
Notably, after slipping below the crucial $90 level to a low of $89.47, Solana rebounded above $91 as activities gained traction on the market.
As of this writing, Solana is changing hands at $91.71, which represents a 2.58% increase in the last 24 hours.
The asset has also recorded a significant uptick in volume as SOL jumped by 10.55% within the same time frame to $4.4 billion.
The spike is largely because of strong on-chain activity and the Solana blockchain processing over 100 million transactions daily. The spike in activity has renewed the confidence of market participants, leading to the bullish sentiment seen.
If investors sustain the momentum, Solana has the prospect of closing near $95. However, the coin needs to close above $90, and the volume needs to stay green to achieve this potential.
SOL's RSI near overbought territory raises caution
A possible hurdle is the asset’s Relative Strength Index (RSI), which stands at 68.07. Although Solana is not yet overbought, investors would need to watch out for any switch in market outlook.
As U.Today reported, a Solana whale recently unlocked his stake worth over $163 million in a single transaction. This move could trigger volatility on the market if traders consider it as a selling move. There is no clear indication yet if the unlocked SOL were sent to exchanges, but such a development could slow Solana’s price uptick.
As investors monitor developments, a crypto analyst, Ted Pillows, argues there is a possibility of SOL ascending to $95. A lot will depend on the ability of market participants to sustain the current momentum and cancel any selling pressure building in the space.
Dan Burgin
Vladislav Sopov
