Key takeaways
- SOL rose 7% over the past 24 hours and is now trading above $220.
- The coin could approach resistance at $240 as the broader market rebounds from recent lows.
SOL hits the $220 resistance level
The cryptocurrency market reversed course after a weak start to the week. Bitcoin, the largest cryptocurrency by market capitalization, climbed to about $119,000 a few hours ago, enabling a rally among altcoins.
Solana’s SOL has gained more than 7% in the last 24 hours, making it the second-best performer among the top 10 cryptocurrencies by market cap. SOL’s rally has been supported by the launch of the US tokenized treasury fund, USYC, on the Solana blockchain. This launch extends USYC beyond Ethereum, Near, Base and Canton networks.
USYC carries a market capitalization of $630 million, ranking it the fifth-largest tokenized treasury offering. Its deployment on Solana could boost institutional interest in SOL. Integration with Solana opens new potential use cases for USYC, such as serving as collateral for margin trading of derivatives or as an income-generating asset on Solana-based DeFi platforms.
SOL targets $240 as the rally continues
The 4-hour SOL/USD chart shifted bullish as the coin advanced over the past day. SOL broke above the $220 resistance level and is currently trading around $224 per coin.
Momentum indicators also turned positive. The RSI near 70 shows buyers are in control, and a further increase could push RSI into overbought territory. MACD lines are also in positive territory, indicating bullish sentiment.
If the rally continues, SOL may advance toward the next key resistance near $241. However, the 4-hour SOL/USD chart shows inefficiencies that could see the price grab liquidity around $214 before moving higher.
Conversely, if the market experiences a correction after the recent surge, SOL could retest support and the TLQ level around $205. Bulls are likely to defend this area, since a break below it could push SOL under $200.