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Solana (SOL) has been facing intense volatility and turbulent price movements since the beginning of the week, as it tests a critical supply level that will determine its future direction in the upcoming weeks. With the market showing signs of upward momentum, many analysts and investors are eyeing a potential surge for SOL, especially as the $160 resistance level appears to be weakening under recent buying pressure.
The cryptocurrency community is closely monitoring these developments, as a breakthrough of this significant resistance could lead to substantial gains for the altcoin.
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Renowned analyst and investor Carl Runefelt recently provided a technical analysis that suggests a positive outlook for Solana’s price action in the coming hours. According to Runefelt, the weakening resistance level could pave the way for a breakout, with bullish momentum propelling SOL towards higher price targets.
Despite the ongoing volatility in the market, confidence in Solana’s ability to overcome current obstacles is on the rise. If the crucial supply level is breached, it could signify the beginning of a new upward trend, making SOL an attractive option for traders seeking opportunities in the current market environment.
The next few days will be pivotal in determining Solana’s trajectory, as investors await confirmation of the anticipated rally.
Solana Bullish Pattern Indicates Momentum
The entire cryptocurrency market is witnessing heightened volatility, and Solana is no exception, with its price fluctuating between $148 and $160 since the start of the week. This period of consolidation has left traders eager to see which direction the altcoin will ultimately take in the days ahead.
Runefelt recently shared a technical analysis on X, highlighting that Solana is breaking out of a 1-hour Falling Wedge pattern, a bullish signal.
The immediate upside target is $159.6, a level that, if surpassed and sustained, could lead to a significant surge towards $185—a substantial move that would position Solana near its yearly highs.
Despite the optimistic setup, caution prevails in the market, with the risk of Solana failing to reclaim crucial levels. If the price struggles to break and hold above the $159.6 resistance, the current consolidation phase could continue or potentially result in a pullback towards $148. Such a scenario would disappoint bullish traders anticipating a rally and could temporarily dampen market sentiment.
Technical Levels To Monitor
Solana is currently trading at $154 after finding support at the 200-day moving average (MA) at $150.7, a critical level that indicates long-term strength if maintained as a demand zone. This MA has historically served as a significant indicator for market trends, and staying above it would reinforce the bullish outlook for SOL.
To sustain momentum, bulls must keep the price above the 200-day MA and aim to break the crucial $160 resistance, a level that has hindered Solana’s upward movement since early August. A successful breach of this resistance would indicate a potential price surge, setting the stage for further gains in the weeks ahead.
However, failure to hold above the 200-day MA and overcome the $160 resistance could result in a corrective downside move. A drop below the 1D 200 MA might lead to a decline towards $140, a level that will play a vital role in determining the next phase of Solana’s price action.
Conclusion
Both bulls and bears are closely monitoring these critical levels, as Solana’s next move is expected to significantly impact its performance in the near term. A confirmed breakout and sustained momentum could signal the beginning of a new bullish phase, attracting interest from retail and institutional investors alike. However, the possibility of a failed breakout remains, keeping market participants on edge as they await Solana’s next move.
Featured image from Dall-E, chart from TradingView