Solana is showing strength with its rise above the critical level of $171, a price that previously served as supply and is now acting as a strong demand area. This level is suitable for bulls, as stability above it may pave the way for a rise in the coming weeks.
Cryptocurrency analyst and investor Carl Runefelt recently shared a technical analysis that suggests Solana’s current price action remains bullish as long as it maintains support above this mark.
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Solana’s ability to turn previous resistance into a support base reflects rising demand, which can serve as a catalyst for further upward momentum. The market is closely monitoring these movements and it is expected that the next few days will be crucial for Solana.
If SOL maintains its path above $171, it could spark optimism about an extended uptrend. Investors are likely to closely monitor Solana’s price dynamics, as any shift below this level could change the short-term outlook for a promising cryptocurrency asset.
Solana tests liquidity
Major investors Carl Runefelt recently shared his thoughts on Xwhich highlights the importance of Solana’s head and shoulders pattern. In his analysis, Roonevelt noted that a successful retest of the neckline would confirm the strength of the uptrend.
Runefelt’s chart analysis also indicates that as long as SOL remains above the neckline, the bullish momentum is expected to continue, with its price target set at $202 in the short term.
This potential upward move has caught the attention of both investors and traders who are looking at the $202 level as an achievable target if the current uptrend continues. Runefelt’s analysis emphasizes that the neckline acts as a crucial support level – a level that, if maintained, could trigger strong buying interest. However, any break below this neckline could change momentum, which could lead to a more cautious outlook.
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With the head and shoulders structure forming, Solana’s price action will be crucial in the next few days. A successful retest of the neckline could lead to continued growth, possibly pushing SOL to new highs.
SOL price action
Solana (SOL) is trading at $172, and is steadily rising as it targets a higher supply zone. To maintain this bullish momentum, SOL bulls need to push the price above the critical $180 resistance level. The $180 mark is acting as a major resistance, and breaking it could trigger a wave of FOMO (fear of missing out) buying, which could send the price higher. This psychological level may attract increased interest from traders who see a clear breakout as a signal for further gains.
However, maintaining this upward trend is essential. If SOL cannot maintain support above $171, a bounce back to lower demand areas is likely. This move could take SOL back to testing support levels near previous lows, which could slow down the current momentum.
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For traders and investors watching closely, the next moves around the $171 and $180 levels are key indicators. A strong rally beyond the $180 level could indicate continued strength in Solana’s price action. A drop below $171 could indicate weakness, indicating a pause or pullback in the recent rally.
Featured image by Dall-E, chart from TradingView