Key Points
- SOL rose 7% over the past 24 hours and is now trading above $220
- The coin could surge toward $240 as the broader market bounces off recent lows
SOL Breaks Above $220 Resistance
The cryptocurrency market reversed course after a rough start to the week. Bitcoin, the largest crypto by market capitalization, climbed to $119,000 earlier, helping altcoins to rally.
Solana’s SOL gained more than 7% in the past 24 hours, making it the second-best performer among the top ten cryptocurrencies by market cap. SOL’s rally was supported by the U.S. treasury token from Circle, USYC, launching on the Solana blockchain. This launch expands USYC beyond Ethereum, Near, Base and Canton networks.
USYC has a market capitalization of $630 million, making it the fifth-largest treasury token offering. Launching on Solana could boost institutional adoption of SOL. Integration with Solana creates new use cases for USYC, such as using the treasury token as margin collateral for derivatives trading or as a yield-bearing asset within Solana-based DeFi platforms.
SOL Eyes $240 as Rally Continues
The SOL/USD 4-hour chart shifted bullish after the coin’s 24-hour surge. SOL cleared the $220 resistance and is trading around $224 per token.
Momentum indicators have also turned bullish. The RSI near 70 suggests buyers are in control, and a further rise could push RSI into overbought territory. The MACD remains in positive territory, indicating bullish bias.
If the rally continues, SOL could climb to the next major resistance near $241. However, the SOL/USD 4-hour chart shows limited upside efficiency, which could prompt a liquidity grab around $214 before a continued move higher.
Conversely, if the market undergoes a pullback after the recent surge, SOL could retest support and the TLQ level near $205. Bulls are likely to defend this area, as losing it could push SOL below $200.