Key Points
- Over the past 24 hours SOL gained 7% and is now trading above $220.
- The coin could climb to resistance at $240 as the broader market recovers from recent lows.
SOL Breaks Above the $220 Resistance
The cryptocurrency market reversed course after a weak start to the week. Bitcoin, the largest cryptocurrency by market capitalization, recently reached $119,000 for the futures contract reference level, helping altcoins to move higher.
Over the last 24 hours, SOL (Solana) rose more than 7%, making it the second-best performer among the top 10 cryptocurrencies by market capitalization. The SOL rally has been supported by the launch of a tokenized U.S. Treasury fund, USYC, on the Solana blockchain. This deployment extends USYC beyond Ethereum, Near, Base and Canton networks.
USYC has a market capitalization of $630 million, ranking it among the larger tokenized treasury bills. Its arrival on Solana could boost institutional interest in SOL. Integration on Solana opens new potential use cases for USYC, such as using tokenized Treasuries as margin collateral for derivatives trading or as yield-bearing assets on Solana-based DeFi platforms.
SOL Eyes $240 as the Rally Continues
The 4-hour SOL/USD chart turned bullish after the coin advanced in the past day. SOL cleared the $220 resistance level and is currently trading around $224 per token.
Momentum indicators have also shifted to bullish. A 70 reading on the RSI shows buyers are in control, and a further rise could push the RSI into overbought territory. MACD lines are in positive territory as well, reinforcing the bullish bias.
If the rally continues, SOL could surge toward the next notable resistance near $241. However, the 4-hour SOL/USD chart shows inefficiencies that may cause the price to capture liquidity around $214 before moving higher.
Alternatively, if the market pulls back after the recent advance, SOL could retest support and the TLQ level near $205. Bulls are likely to defend this area, since a break below it could push SOL under $200.