- Solana (SOL) is boasting a 10% surge, breaking above the critical resistance level of $120.
- This happens as cryptocurrencies look to bounce despite the overall bearish sentiment across risk asset markets.
- With analysts suggesting a bullish flip for Bitcoin, is SOL on the verge of a breakout to $200?
The broader crypto market whipsawed alongside stocks this week, rallying on Wednesday before paring gains on Thursday.
Fueled by a pause in U.S. tariffs against several countries, Solana broke to above $115.
But it gave up all the 24-hour gains as President Donald Trump’s decision to delay tariffs, excluding China, drew a response from Beijing.
The Chinese imposed a retaliatory levy on imports from the US, bringing total tariffs to 125%. It meant the calm that Trump’s pause brought only lasted a day before Thursday saw risk assets swing lower.
Solana is, however, up today, rallying 10% in the past 24 hours to break above $120. SOL’s gains come as Bitcoin reclaims $83k.
Risk assets and expert commentary
Stocks and crypto have dumped despite positive US inflation data suggesting otherwise this week. On Friday, the Producer Price Index for March showed that inflation fell to 2.7%, below expectations of 3.3%. Also, core PPI dropped to 3.3%, with this below the expected 3.6%.
Given the consumer price index data released on April 10, both US inflation measures of CPI and PPI indicated a significant slowdown in March. However, tariffs and the overall economic outlook has many experts warning of further pain.
Larry Fink, the chief executive of BlackRock suggests the US may already be in a recession. He said during an interview with CNBC:
“I think you’re going to see, across the board, just a slowdown until there’s more certainty. And we now have a 90-day pause on the reciprocal tariffs. That means longer, more elevated uncertainty.”
Mohamed El-Erian, an economist and Allianz advisor, posted on X:
“As the risk of financial market malfunction climbs again to an uncomfortable and worrisome level, this is not just about a “game of chicken” on tariffs between China and the US. It is also developing into one between the Administration and the Federal Reserve.”
According to El-Erian, “there is a lot at stake here.”
Can SOL rally to $200 this April?
Solana price traded near $300 in January. However, SOL has given up nearly 60% of the gains since that peak. The downtrend saw the altcoin fall below $100 this month.
Bulls are back above $120 though, the latest uptick helping sentiment.
Technical indicators suggest a short-term bullish case, with RSI near the midpoint and MACD indicating a bullish crossover on the daily chart.
If Solana’s price breaks above $150, buyers could eye $180–$200 as the next targets. However, if momentum falters, the support levels could be $105 and then $80.
