Solana (SOL) has recently broken out of a period of sideways trading. It has successfully reclaimed the $200 mark as support after being stuck below it for much of December. This bullish movement has sparked renewed optimism among investors. Many believe that SOL could continue its recovery and reach higher price targets.

The Net Unrealized Profit/Loss (NUPL) indicator for Solana shows that, despite some price swings, investors still have confidence in the altcoin’s recovery. A lot of them are choosing to hold onto their assets. This decision helps to reduce selling pressure, which is a positive sign for the current uptrend.

Investor confidence is crucial for sustaining recoveries. When market participants hold their positions, they help minimize supply-side pressure. This makes it easier for bullish momentum to build. As a result, SOL is in a strong position to capitalize on this positive sentiment and continue moving upward.

Moreover, Solana's macro momentum is gaining strength. The Relative Strength Index (RSI) has climbed back above the neutral level of 50.0. This indicates that bullish momentum is returning, potentially paving the way for further price increases. Typically, an RSI above 50.0 suggests a favorable environment for upward movement.

With this renewed strength, Solana is expected to reclaim important resistance levels. If this momentum holds, SOL could continue to rally and reach higher price points. Technical indicators suggest that the altcoin is well-positioned to recover from its recent setbacks.

Currently, Solana is trading at $205, which is an 8.7% increase over the last 24 hours. This surge has allowed SOL to flip the $201 resistance into support. Holding this level is vital for sustaining the ongoing recovery and targeting further gains.

The next goal for SOL is to establish $221 as support. This is a key barrier between the altcoin and its target of $245. If SOL can reach $245, it would recover a significant portion of its recent losses, boosting both its bullish outlook and investor sentiment.

However, if the momentum doesn’t hold or if profit-taking occurs, SOL might lose the $201 support level. If that happens, the altcoin could consolidate above $186 or even drop below it. This would invalidate the bullish outlook entirely.