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Solana (SOL) is currently trading at the lower end of the monthly range that began in March, putting the asset at a pivotal level that will determine its price movements in the coming months.
As the broader cryptocurrency market faces uncertainty, analysts and investors are closely watching whether this range represents an accumulation phase that could precede a significant rally.
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Senior analyst and investor Mister Crypto recently shared a technical analysis comparing Solana’s current price structure to its performance in 2021, highlighting similarities that point to a potential bullish breakout. His analysis reflects optimism amid jitters in the market, as many believe Solana may be on the verge of another strong upward move.
While caution remains, investors are awaiting confirmation that Solana’s recent range trading lays the foundation for a sustainable rally. The outcome in the next few weeks could significantly impact Solana’s trajectory for the rest of the year.
Solana Price Action: Accumulation or Bull Trap?
Solana (SOL) has been trading in a range of $210 to $110 since mid-March, and while some investors are starting to think this may be a bull trap rather than an accumulation, others remain cautiously optimistic.
Rising sentiment suggests that Solana’s long sideways move may not lead to the long-awaited breakout but could lead to further declines. Despite these concerns, prominent analyst Mister Crypto offers a more bullish perspective.
In his latest analysisMister Crypto compares current market sentiment around Solana with that of 2021, just before the asset surges to new all-time highs. It highlights the similarities between the market fears and uncertainty that preceded Solana’s previous big rally.
According to him, such fear-driven consolidation is often a signal of emerging bullish patterns, with the potential for significant gains once the market recovers.
Mister Crypto refrains from giving a specific target price but indicates that Solana’s next major move could surpass its all-time high of $260. While the current mood remains cautious, his analysis provides hope that Solana may be preparing for another major upward move, as historical patterns have shown similar price behavior prior to major rallies.
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The coming weeks are likely to be crucial for Solana as traders and investors wait to see if he will break out of his range or continue to face downward pressure.
Key SOL levels to monitor
Solana (SOL) is currently trading at $138, following a 9% correction from its 200 daily moving average (MA) of $152. This decline represents a significant loss of momentum, as the price also fell below the 200-day Exponential Moving Average (EMA) at $140 – a crucial support level. The loss of the 200 EMA raises concerns about the possibility of falling further in the coming weeks.
For the bulls to regain control, the price must reclaim the 200 MA and EMA, and push above the critical resistance level at $160. A rise above this level indicates renewed bullish momentum and the potential for Solana to move higher. However, if SOL fails to recover these key indicators, it could indicate a deeper correction.
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If the price continues to decline, traders may see SOL heading towards lower demand areas around $110, a level that has served as strong support in the previous months. Investors and analysts are watching closely to see if Solana can maintain its current levels or face more downward pressure in the near future. The next few days will be pivotal for SOL’s price movement and overall market direction.
Featured image by Dall-E, chart from TradingView