Solana (SOL/USD) closed more than 6% higher on Thursday after breaking through a strong resistance level it had tested several times last week. Many investors now expect Solana to experience a rally similar to what Terra (LUNA/USD) and Polygon (MATIC/USD) saw, targeting a new all-time high. Solana is a blockchain platform built to host scalable decentralized applications. It can process far more transactions per second and offers much lower transaction fees than rival blockchains like Ethereum (ETH/USD), which supports expectations that Solana may grow at a faster pace than Ethereum.
Following a sharp rebound in November that pushed Solana to a record high, the token has since corrected, retracing more than 40%. However, the correction appears to be nearing its end, and Solana could soon begin a renewed push toward a fresh all-time high. Should you consider buying Solana now?
Chart analysis suggests the following key points:
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Solana has a strong demand zone around $190 and cleared that level on Thursday when it surged over 6%.
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The last time Solana fell from the $190 area, it dropped to $150, highlighting how critical this zone is for price action.
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After breaking the resistance on Thursday, Solana appears to be retesting the zone on Friday and could resume its rally soon.
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Investors may prefer to wait for Solana to clear the 200-day moving average before initiating long positions to confirm a bullish bias.
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Exercise caution: Solana could still break back below the $190 support zone, so a stop-loss near $165 is recommended to manage downside risk.
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Potential upside targets include $220, followed by $245, and possibly a new all-time high in the coming weeks if bullish momentum continues.