A Fresh Rally Could be on the Horizon

Solana achieved the highest milestone for the year at $98 after maintaining a bullish trend for a couple of days. The token is poised to reach the milestone of $100 after registering itself as the best performer of 2023 within the top 10. The token surpassed XRP initially and later flipped Binance Coin to become the 4th largest crypto for some time.

The Solana ecosystem recently generated high activity and interest from market participants with new projects and airdrops. It also observed a spike in its volume, reaching a 6-month high, as the participants were attracted to these airdrops from the Solana ecosystem. With this, the SOL price has entered a crucial juncture, challenging a resistance zone. A decisive close for the week above these levels is expected to catalyse a significant surge towards a higher zone.

The resistance is where the SOL price has reached and has been a battleground for bulls and bears several times in the recent past. The rally has triggered a sensible rebound and also a steep bearish trend previously. Therefore, a bullish weekly close above this level may lead to a fresh rally towards the upper resistance at 2022 highs around $137 to $140. Conversely, failing to secure these levels may signal an inability to maintain bullish momentum.

This could weaken the bulls, which may further begin with a fresh descending trend towards the lower Fair value gap (FVG) zone, offering more opportunity for the bears. This dual-scenario outlook underscores the importance of the upcoming weekly close, which will likely dictate the short-to-medium trend for the Solana (SOL) price in the coming days.