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Solana is testing a critical level after weeks of price volatility and market uncertainty. Following the Fed’s rate cut announcement, Solana stock rose 26% but quickly fell 17%, reflecting the ongoing turmoil in the broader cryptocurrency market. This volatile price action has left many investors on edge as they wait for the next clear signal.
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Amid this uncertainty, top analysts are closely monitoring Solana’s next move, with one in particular pointing to the $160 level as the crucial level that could determine its direction. A break above this level could reignite bullish momentum, while failure to do so could result in further bearish pressure.
The coming days will be crucial for Solana as investors evaluate the market’s trajectory and prepare for potential volatility. With SOL standing at a pivot point, both bulls and bears are watching closely to see if the price can break through key resistance or succumb to further correction.
Solana tests liquidity below $160
Solana has seen significant ups and downs over the past two weeks, leaving investors in a state of uncertainty following the recent decline. Many were expecting further gains before the bounce, which has now sparked caution in the market. With Solana trading in this volatile environment, the focus has shifted to key technical levels that could determine the next big move.
Best crypto analyzer Dan shared his thoughts on Xnoting that Solana has formed three approximately equal peaks around the $160 level. It also highlights that SOL is consistently making higher lows, which is a sign of growing potential upward momentum.
According to Dan, this gradual upward drift indicates that Solana may eventually break through the $160 resistance level, which would be a pivotal moment for the cryptocurrency.
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The reaction at $160 will be crucial. If Solana can break above this level, it could signal a new high and ignite bullish sentiment in the market. However, if the price fails to maintain momentum, Solana may remain within the $120-$160 range, continuing its sideways movement. Investors are watching these levels closely as Solana’s next direction may determine his performance for the rest of the year.
Price Action: Supply levels for breakout
Solana (SOL) is currently trading at $143 after seeing a few days of choppy price action. The market has been volatile, and SOL is now testing the 4-hour Exponential Moving Average (EMA) at $144.55. This level acts as a major resistance point, and a break above it could indicate Solana’s continued rise.
If SOL can break and hold above the 4-hour 200 EMA, the next target for the bulls will likely be the $160 level. A move above $160 could reignite positive sentiment, which could pave the way for further gains. However, if SOL fails to break the $144.55 resistance level, a bounce to lower demand areas is expected.
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In the event of rejection at the 200 4-hour EMA, Solana could fall to the $127 support level, where traders and investors will closely watch for signs of strength or further downside risks. Price action over the next few days will be crucial in determining whether SOL can resume its upward trajectory or whether a deeper bounce is on the horizon.
Featured image by Dall-E, chart from TradingView