Solana (SOL) is now trading around a crucial supply zone following an impressive 26% rise since September 18 following the Federal Reserve’s announcement of interest rate cuts. This strong recovery has sparked optimism among analysts and investors, who hope that Solana can soon reach new all-time highs.
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Many in the crypto space believe Solana is poised for further gains, with some expecting it to outperform the broader market in the coming months. A prominent analyst, Carl Runefelt, shared a technical analysis on X, highlighting the potential for a parabolic move once SOL reaches its annual high.
With growing attention to Solana’s strong fundamentals and technical strength, the market is watching closely to see if SUN can maintain its upward trajectory and achieve the explosive gains that many predict.
As Solana hovers near these key levels, the next few days could be critical in determining whether it will continue its upward march or face renewed selling pressure.
Solana to $200 before new ATH
Solana (SOL) is now testing a key area of liquidity and investors are closely watching the next price movement. After a rally over the past two weeks, many are expecting a surge that could push SOL higher. However, some concerns remain that Solana may underperform this cycle compared to other leading altcoins, which have shown stronger market activity.
Prominent crypto analyst Carl Runefelt recently shared a detailed analysis in Xhighlighting a bullish “cup and handle” pattern forming in Solana price action. This pattern, often seen as a sign of continued upward momentum, has a clear resistance level of around $200. Runefelt believes that once Solana breaks through this key level, the price could turn parabolic, with the next target main being the all-time high (ATH) of around $260.
In his analysis, Runefelt emphasizes that breaking the $200 resistance will be crucial to Solana’s price action. When this happens, he predicts a quick and aggressive move to new highs.
The cup and handle formation is a classic bullish continuation pattern, often leading to sharp price increases, suggesting that Solana may be poised for a major breakout.
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With market sentiment still bullish and Solana testing critical levels, the coming weeks could determine whether the asset achieves the explosive gains many anticipate.
Crucial supply for SOL testing
Solana (SOL) is trading at $156 after a 13% move from last week’s lows. The price successfully reclaimed the 200 daily moving average (MA) at $154, holding it as support – a bullish signal that could propel SOL to higher levels soon.
However, SOL is facing resistance at the local high of $163, where it has struggled to break. Bulls need to push the price beyond this critical level to trigger a rally towards the yearly high of around $210. This would further strengthen the positive sentiment around Solana as investors and traders look for confirmation of a greater upward movement.
On the downside, if SOL fails to break above the $163 resistance, a pullback to lower demand levels around $140 will become more likely. This would represent a critical test for the asset, as the inability to maintain support at these lower levels could weaken the bullish momentum built over the past few weeks.
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With SOL hovering near key levels, the next price move could set the stage for a rally towards new highs or a deeper pullback.
Featured image of Dall-E, TradingView chart
