SOL eyes $240 amid market rally

Key takeaways

SOL is up 7% within the final 24 hours and is now buying and selling above $220.
The coin may rally in direction of the $240 resistance because the broader market bounces again from current lows.

SOL tops the $220 resistance degree

The cryptocurrency market has turned issues round following a poor begin to the week. Bitcoin, the main cryptocurrency by market cap, hit the $119k degree a number of hours in the past, permitting altcoins to rally increased.

Solana’s SOL added greater than 7% to its worth within the final 24 hours, making it the second-best performer among the many prime 10 cryptocurrencies by market cap. SOL’s rally is fueled by Circle’s tokenized U.S. Treasury fund, USYC, launched on the Solana blockchain. This launch signifies that USYC has expanded past the Ethereum, Close to, Base, and Canton networks.

USYC has a $630M market cap, making it the fifth-largest tokenized treasury providing. Its launch on Solana may improve the adoption of SOL amongst institutional buyers. The mixing on Solana provides new potential use instances for USYC, together with utilizing the tokenized treasury as margin collateral for derivatives buying and selling or as a yield-bearing asset in Solana-based DeFi platforms.

SOL targets $240 as rally continues

The SOL/USD 4-hour chart has switched bullish after the coin rallied over the past 24 hours. The coin has damaged above the $220 resistance degree and is now buying and selling at $224 per coin.

The momentum indicators have additionally switched bullish. The RSI of 70 exhibits that consumers are in management, and if it rallies increased, the RSI may enter the overbought area. The MACD strains are additionally throughout the constructive area, suggesting a bullish bias.

If the rally continues, SOL may surge in direction of the subsequent main resistance degree at $241. Nevertheless, the SOL/USD 4-hour chart is inefficient, which may see it seize liquidity round $214 earlier than rallying increased. 

On the flip aspect, if the market undergoes a correction after its current rally, SOL may retest the assist and TLQ degree at $205. The bulls would defend this degree, as shedding it may see SOL dip beneath $200.