Can Solana price rally past $100 on an ascending triangle breakout?

Solana’s price rallied over 6% to a five-week high of $94 on Monday amid a broader market rebound.

According to data from crypto.news, Solana (SOL) price rose nearly 7% to $94.07 on March 16, reaching its highest level since early February.

The seventh leading crypto asset by market cap rallied during a market-wide recovery after Bitcoin (BTC), the bellwether crypto asset, surpassed the $74,000 psychological resistance level, as investors rotated capital away from traditional safe-haven assets like gold and silver, which have tanked recently after hitting new highs.

The altcoin’s price also gained significant support from a short squeeze that followed shortly after its rebound near $90, where several short positions were concentrated. When short positions are liquidated, traders are forced to buy back the asset to cover their losses, which triggers a rapid upward price spiral as buying pressure intensifies.

Its leveraged markets also played a pivotal role in this momentum. Notably, SOL futures open interest increased by 7% over the past 24 hours, a sign that more liquidity was entering the market.

Meanwhile, spot Solana ETFs, which recorded their fifth consecutive week of net inflows by bringing another $106 million into the investment products, have also uplifted investor sentiment surrounding the token. 

On the daily chart, the Solana price is eyeing a breakout from an ascending parallel channel pattern, a popular bullish continuation pattern in technical analysis.

The 20-day simple moving average is also close to confirming a bullish crossover with the 50-day. A bullish crossover between these moving averages has historically signaled the start of a sustained uptrend. Additionally, the Relative Strength Index has been moving upwards after some consolidation in the neutral zone.

Hence, the path of least resistance for Solana suggests a move above the $100 psychological threshold over the coming sessions. A decisive break further above the $100 mark could embolden bulls to target the 100-day SMA at $110 as the next major resistance level.

On the contrary, if bullish momentum fails, the Solana price could revisit the 50-day SMA at $90, a drop below which can invalidate the current bullish thesis and lead to a deeper correction toward the $80 support zone.