What drives Solana (SOL) to reach a new high?


Solana (SOL) price just hit a new historic high at $264.39 during the trading session on November 23. The price then saw a 3% correction, bringing this popular altcoin back to 255, 12 USD at the moment.

Despite the pushback, the uptrend for this altcoin is still consolidating. Daily chart analysis points out two reasons that suggest the possibility of Solana price reaching a new peak in the near future.

Solana Bull Market Overwhelms Bears

On the one-day SOL/USD chart, Solana price is above the blue line of the Super Trend indicator. This indicator measures the overall direction and strength of a price trend. It appears as a line on the chart, changing color according to the current trend: green represents an uptrend, while red indicates a downtrend.

When the Super Trend line is above the price of an asset, this signals a downtrend, suggesting a continuation of bearish momentum. In the case of Solana, when the Super Trend line turned green and moved below the price, buyers took control.

This green line often acts as support, where increased buying pressure can spur recoveries after pullbacks. For Solana, this support is currently established at $213.53.

Solana Super Trend. Source: TradingView

Furthermore, the coin’s price is above the Ichimoku cloud, reinforcing the bullish outlook. This indicator tracks the momentum of asset market trends and identifies potential support/resistance levels.

When the price of an asset is above the Ichimoku cloud, this signals an uptrend. It shows that the asset is in an uptrend with the potential for further increases. In this case, the cloud is a dynamic support area under the price, reinforcing the bullish sentiment.

Solana Ichimoku Cloud. Source: TradingView

SOL Price Forecast: New Peak On The Horizon

Currently, SOL is trading at $255.12, below new resistance at the historic peak of $264.39. If buying pressure continues to strengthen, the coin’s price will turn this level into support and test a new peak.

Solana Price Analysis. Source: TradingView

On the other hand, if profit-taking spikes, SOL price could pare some of its current gains to trade at $231.35. If this level fails to hold, SOL price will fall towards the support created by the Super Trend indicator at 213.53 USD. This will nullify Solana’s ability to reach new highs in the near future.

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