For the last few days, Solana has accumulated and formed important support zones. The coin systematically fixed near the important support area at $140, following its upward movement. Onchain activity and trading volumes remained at a high level, which prevented the token from dropping significantly in value. Due to this fact, by September 7, SOL reached a new all-time high and made a powerful upward breakthrough to the new maximum.
Over the past 24 hours, Alta rose by 27.5% and at 1:00 p.m is quoted at $181.8. The token's weekly gain was 70% and trading volumes remain high, indirectly indicating the market's desire to continue Alta's rally. The SOL/USD pair hit a new historical high at $193, following rebound to the local support zone. The coin managed to stop falling and after a brief consolidation, continued the upward movement. This fact is indicated by the two-hour price movement, which becomes positive and proceeds to rise. However, Solana has to pass the historical limit of $193 to continue the bullish rally. There are several reasons for it, the most significant is the excessive profitability of the coin. After reaching a new high, the number of stops near $190 has risen sharply, and the MVRV continues to surge, indicating massive profit taking.
Excessive asset growth doubts getting even more profits.The duration of the current consolidation period will mainly depend on the market sentiment. There problems may arise, as experts from JPMorgan did not approve a rapid rise of Alta and associated it with a bubble. This has affected both Solana and the altcoin market as a whole. However, Solana SEO remarked on the conclusions of JPMorgan experts and said that the current growth of SOL was determined by the development of the project and market demand. Notably, after the developer's statement Solana hit a new all-time high, and the market reacted positively to it. According to monthly statistics, SOL/USD is one of the most demanded coins with a perfect reputation, such market reaction is natural.
Besides the fundamental reasons, the technical indicators also signal Solana's further rally. On the hour chart we see that the market is approaching the end of the consolidation phase: stochastic and RSI resume the upward movement, but MACD has not yet shown any sign of an upward reversal. At the same time, it is too early to indicate divergence, though there is a possibility.
There is no clear picture on the daily chart, but we see clear prerequisites for the resumption of the upward movement. The MACD continues a strong upward movement as well as the RSI (already in the overbought zone), but the stochastic indicates that a consolidation period is possible. Most likely, the situation will change on the daily chart after the end of the current trading day. Now the asset looks overbought, which is quite expected after reaching a new historical high. After a local correction and consolidation period all divergence and overheat of the asset will disappear. This is indicated by social activity, according to which SOL continues to be one of the most discussed assets. Onchain activity and daily trading volumes will allow the coin to form strong support zones near historical highs. There is also an upward trend in the number of longs, indicating that Solana's bullish rally will continue.
