Key takeaways
- SOL rose 7% in the last 24 hours and is now trading above $220.
- The coin could rally toward $240 resistance as the broader market recovers from recent lows.
SOL breaks above the $220 resistance level
The cryptocurrency market has staged a recovery after a weak start to the week. Bitcoin, the top cryptocurrency by market capitalization, traded near $119,000 hours ago, providing momentum for a broader altcoin lift.
Solana’s SOL gained more than 7% in the past 24 hours, making it the second-best performer among the top 10 cryptocurrencies by market cap. SOL’s rally was supported by the launch of the U.S. Treasury tokenized fund USYC, issued by Circle, on the Solana blockchain. That launch extends USYC beyond Ethereum, Near, Base, and Canton networks.
USYC carries a market capitalization of $630 million, ranking it as the fifth-largest tokenized treasury offering. Its deployment on Solana could boost institutional interest in SOL. Integrating USYC on Solana creates new potential use cases, such as using tokenized treasuries as collateral for derivatives margin or as yield-bearing assets within Solana-based DeFi platforms.
SOL eyes $240 as the rally continues
The 4-hour SOL/USD chart turned bullish after the recent 24-hour advance. The coin has pushed above the $220 resistance zone and is currently trading around $224 per SOL.
Momentum indicators have also shifted to a bullish stance. The RSI near 70 shows buyers in control, and continued upside could push the indicator into overbought territory. The MACD line sits in positive territory, reinforcing a bullish bias.
If the rally maintains momentum, SOL could surge toward the next major resistance near $241. However, the 4-hour SOL/USD structure shows inefficiencies that might prompt a run to capture liquidity around $214 before a fresh leg higher.
Conversely, if the market pulls back after the recent gains, SOL may retest support and the trendline near $205. Bulls will need to defend this level, as a break below it could open the door to a drop beneath $200.