Solana (SOL) saw a significant 6.93% price surge over the last hour to $24.78, according to data provided. The cryptocurrency currently has a market capitalization of $9.33 billion and 24 hour trading volume of $476.82 million.
SOL's impressive hourly gain shows renewed momentum after mixed price action this week. Over the past 24 hours, SOL is up a modest 0.77%, but down 3.17% over the past 7 days. Zooming out paints a different picture, with SOL up a whopping 43.09% over the past month.
The recent surge looks to be breaking SOL out of its short-term consolidation phase between $22-$25. Trading volume is robust, indicating strong interest in SOL at these levels. The cryptocurrency now looks poised to retest overhead resistance around $27.50.
Is Solana Gearing Up for Another Leg Higher?
Solana's impressive 6.93% surge over the past hour shows its consolidation phase may be ending. The cryptocurrency is attempting to break out above short-term resistance around $25.
If SOL can close decisively above $25 on heavy volume, it would give a strong bullish signal. This would open the doors for a continued move higher, with the next target being the $27.50 level.
Traders should watch for SOL to hold above $25 on any pullbacks. As long as it can establish this as support, the path of least resistance is to the upside. The bullish momentum appears to be accelerating.
Should You Buy Solana After the Recent Breakout?
Solana is flashing bullish signs after breaking out from its recent consolidation range. The technical picture looks constructive for additional upside.
However, chasing FOMO rallies can be risky. Prudent traders may consider waiting to see if SOL can hold above $25 before looking for entries. Setting buy limit orders around $23-$24 could allow buying on pullbacks.
Long-term holders may consider dollar cost averaging. This takes emotion out of timing entries. While not optimal for short-term gains, it can pay off handsomely over an extended time horizon.