Solana (SOL) has been experiencing significant volatility and choppy prices since Monday, testing a crucial supply level that will determine its direction in the coming weeks. As the market continues to rise, most analysts and investors anticipate a potential rise in SOL, especially with the $160 resistance level appearing to weaken under recent upward pressure.
The crypto community is closely following these developments as breaking this key resistance could lead to substantial gains for the altcoin.
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Leading analyst and investor Carl Runefelt recently shared technical analysis that paints a bullish picture for Solana price action in the coming hours. According to Runefelt, weakening resistance could pave the way for a breakout, with bullish momentum taking SOL to higher targets.
While the market remains volatile, confidence in Solana’s ability to overcome current challenges is growing. If the supply level is breached, it could mark the start of a new upward trend, making SOL a focal point for traders looking for opportunities in the current market scenario.
The next few days will be critical in shaping Solana’s trajectory, as investors will closely monitor whether the price confirms the predicted recovery.
Solana Bullish Pattern Signals Momentum
The entire crypto market is experiencing heightened volatility, and Solana has not been immune to this, with its price fluctuating between $148 and $160 since Monday. This consolidation phase has traders eager to see what direction the altcoin will take in the coming days.
Runefelt recently shared a technical analysis on Xhighlighting that Solana is breaking out of a 1-hour Falling Wedge pattern, a bullish sign.
The immediate upside target is $159.6, a level that, if broken and sustained, could lead to a massive rally to $185 – a significant move that would position Solana close to its yearly highs.
Despite this optimistic setup, the market remains cautious and there is still a risk that Solana will not be able to recover key levels. If the price has difficulty breaking out and holding above the $159.6 resistance, the current consolidation could persist or even lead to a potential pullback, with downside targets near $148. Such a scenario would disappoint bulls looking recovery and could temporarily dampen market sentiment.
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A confirmed breakout and sustained momentum could signal the start of a new bullish phase, attracting retail and institutional investors.
However, the risk of a failed breakout looms, keeping market participants on edge. Traders are watching closely as Solana’s next move will likely set the tone for its performance in the coming weeks. If it breaks through resistance, SOL could be on track to reach challenging annual highs.
Technical levels to watch
Solana is currently trading at $154 after finding support at the 200-day moving average (MA) of $150.7, a critical level that signals long-term strength if it remains a demand zone. This MA has historically acted as a key indicator for market trends, and holding it above would reinforce the bullish outlook for SOL.
For bulls to maintain momentum, the price must remain above the 200-day MA and push to break crucial resistance at $160, a level that has limited Solana’s upward movement since early August. Breaking this resistance would signal a potential rise in price, opening the door for further gains in the coming weeks.
However, if SOL fails to hold above the 200-day MA and fails to overcome the $160 resistance, it is at risk of a corrective move. A drop below the 1D 200 MA could lead to a decline to $140, a level that will play a key role in determining the next phase of Solana price action.
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Bulls and bears are closely watching these key levels as the next move could set the tone for Solana’s near-term performance.
Featured image of Dall-E, TradingView chart