The Solana rally is building up strength as the SOL price is back above an important on-chain price level, owing to the increasing accumulation by whales, lower exchange holdings, and new inflows into the spot ETFs.
At the time of writing, SOL is trading at $103.81, up 3.19% over the last 24 hours. Its daily trading volume stands at approximately $7.29 billion, while its market capitalization has reached about $61.04 billion.
Solana Rally Faces a Major Test Above $103
The latest move has put the $ 100- $ 103 range at the heart of Solana’s near-term prospects. As reported on September 4 by crypto analyst Ali Martinez, $100 was one of the strongest support levels for SOL from the technical and on-chain analysis point of view. He said holding this level could lead the way towards $150.
The Solana rally is tightly tied to the UTXO Realized Price Distribution (URPD) indicator.
On the URPD graph, one can see the price points where large volumes of cryptocurrency were traded. For Solana, 39 million SOL was traded at roughly $103.25, and this level is critical during the current recovery.
The fact of breaking out of the trading range where there have been so many previous trades is important since it means that SOL has passed the range where many investors had bought or traded their coins.
With SOL trading now above $103, the emphasis is now on whether the coin will manage to make $103 its support. Nevertheless, the path towards $150 will come with many challenges.
From recent market analysis, it is evident that there are resistance levels at $123 and $132, where a lot of SOL was amassed. Breaking these levels will give the Solana rally room to move towards $150.
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Whale Accumulation Supports the Solana Rally
There is yet another positive sign from on-chain movements regarding the Solana rally.
The count of wallets that have more than 10,000 SOL has risen by 1.58% within a week. The increase in this metric indicates that large holders are accumulating SOL.
Meanwhile, the supply of SOL on centralized exchanges fell by 4.91%.
Once the coins leave exchanges, they might go to private wallets, staking positions, or DApps. Although smaller amounts of coins on exchanges do not always lead to rising prices, they definitely affect the level of liquidity available.
The presence of both larger wallet accumulation and smaller amounts of coins on exchanges is what makes Solana rally currently even more promising.
SOL Technical Indicators Remain Bullish
Technical indicators of Solana are also suggesting a trend towards better momentum.
The RSI of the token is now at the level of about 59.25. This puts the asset in neutral-to-bullish conditions and implies that it has not become overbought yet.
At the same time, the MACD histogram of Solana is still positioned above zero at the level of 5.56. The positive MACD reading implies that the upward momentum is stronger compared to the downward momentum.
What Happens Next for Solana?
The first significant test for the Solana rally is whether SOL will be able to stay above the $100-$103 zone.
If the support holds, there may be an inclination towards $123 and $132. Breaking out of the two resistance zones successfully can push the price towards $150.
The amount of whale accumulation and ETF purchases would also play an important role. Moving the SOL off exchanges would reduce the supply of the coin, while the constant ETF buying would create extra pressure on the buy side.
However, reaching the $150 mark would only be a possibility and not a certainty. The crypto market moves fast, and losing the $100 mark would deteriorate the current positive structure.
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