The price of Solana (SOL) is approaching $120, but bulls need to overcome two barriers.

The price of Solana SOLUSD demonstrates high volatility, having sharply decreased after an unsuccessful attempt to break the $150 mark.

In recent days, Solana has been unable to break through key resistance levels due to the overall market trend. However, now investor optimism is supporting the price, and SOL is approaching $120.

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Solana finds support

One of the positive signals for Solana is the velocity of token circulation (velocity). This indicator has reached a monthly maximum. When the speed of coin circulation increases alongside price growth, it indicates rising demand. Typically, such simultaneous growth is considered a bullish signal. This is the kind of dynamics SOL is currently showing.

Despite the positive signals from the velocity metric, the relative strength index (RSI) is still in the bearish zone. It remains below the neutral mark of 50.

Although rallies are observed in the broader market, the RSI indicates a lack of buying momentum. This means that despite positive movements, price increases may be restrained.

The bearish RSI indicates potential difficulties in the recovery of SOL. The altcoin has not yet gained enough strength to overcome selling pressure.

The price of SOL is trying to recover

The price of Solana has increased by 8.2% in the last 24 hours. Despite signs of recovery, the altcoin remains below the important mark of $120. The next significant resistance is at the level of $123. In recent days, it has repeatedly proven to be a tough nut to crack.

If the bullish trend continues, Solana may break $120 and move towards $123. A consolidation above this level could lead to further growth — up to $135. Investor confidence and ongoing supply distribution may support this upward momentum.

However, if Solana cannot break the barrier at $123, the price may pull back to $105 or even lower. A drop below $105 could indicate a deeper correction — down to $100. In this case, the current bullish forecast will lose relevance, and the correction phase will continue.

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