Solana (SOL) surged over 10% in 24 hours, climbing above $86 and targeting the key $88 resistance level. The rebound from the $72 support zone was accompanied by $10.26 million in weekly net inflows into spot Solana exchange-traded products. Technical indicators show strong bullish momentum, with SOL trading above its upper Bollinger Band and the MACD remaining positive.
Solana price experienced a significant rebound, rising by over 10% over the last 24 hours, with investors lifting the cryptocurrency past the $86 mark.
At the time of writing, SOL is trading at $86.42 with a market capitalization of around $50.54 billion, extending a sharp rebound from the $72 area.
According to crypto analyst BitGuru, the breakout was a “bullish breakout” on August 20. As he noted, Solana has been reversing from the $72 region and rising past $82 towards $88.
The development is noteworthy as the $72 region had served as a vital support level amid the weakness seen in Solana.
Institutional demand for Solana has also shown signs of revival. There were net flows worth $10.26 million in spot Solana exchange-traded products for the week ending on August 14, which was their best weekly flow since May.
Technicals are also confirming short-term bullish momentum. The Solana coin finished the day trading above its upper Bollinger Band of $83.10, while the midpoint trades around $75.93 and the lower band at $68.76.
A breakout above the upper Bollinger Band indicates strong buying pressure has risen to extreme levels.
Bullish signals are also indicated by the MACD indicator. The value of the MACD line is 1.68, higher than the value of the signal line at 0.50, with the histogram at 1.17.
Short-term attention will be on how Solana price holds above the $82-$83 region following its breakout. Should bulls manage to hold above this region, SOL may attempt a new test at the $88 level.
The main danger is that the rally is developing and momentum indicators show overbought territory.
