This article is also available in Spanish.
Solana (SOL) is going through a turbulent period after facing a major 33% retracement from its all-time high of $264, which was reached in late November. Despite the sharp decline, Solana is showing resilience, offering investors a promising long-term outlook.
Related reading
Renowned cryptocurrency analyst Carl Runefelt recently shared his thoughts on X, highlighting SOL’s compelling technical setup. According to Ronfelt, Solana successfully retested the massive triangle pattern on the weekly time frame. This crucial retest indicates that Solana’s price action remains intact and could serve as a springboard for a significant rally soon.
While broader market corrections have weighed on short-term sentiment, Solana’s ability to maintain its structural integrity amid the downturn provides a glimmer of hope for the bulls. If SOL can maintain its current levels and build momentum, it may soon regain lost ground and chart a path toward new highs. Analysts are closely monitoring how Solana responds to this crucial technical signal, as it could determine the altcoin’s trajectory in the coming weeks.
Solana has a bullish structure
Despite a 30% retracement from its all-time high, Solana (SOL) maintains a bullish structure on higher time frames, indicating long-term strength. This resilience has led analysts and investors to be optimistic about Solana’s ability to outperform once the market regains momentum. Known for its strong fundamentals and quick adoption, SOL remains a favorite among traders anticipating the next altcoin rally.
Top Cryptocurrency Analyst Karl Rohnfelt Recently shared a detailed technical analysis about X, highlighting an encouraging pattern for Solana. Runefelt revealed that SOL successfully retested a massive triangle formation on the weekly time frame, a crucial milestone for its upward trajectory.
According to his analysis, if Solana can hold strongly above the $180 level, the cryptocurrency could rise to $330 in the coming weeks. This prediction is consistent with expectations that Solana will be the front-runner in the next market-wide rally.
Related reading
However, the broader market remains in a state of uncertainty. Bitcoin, the market leader, has struggled to regain the $100,000 level, and negative sentiment continues to weigh on trader confidence. This persistent uncertainty poses challenges for altcoins like Solana, which often rely on Bitcoin’s strong performance to sustain rallies.
Critical demand test
Solana is currently trading at $185, showing resilience after successfully holding its 200-day Exponential Moving Average (EMA) at $175. This key level is often seen as a strong indicator of long-term market strength, and SOL’s ability to defend it underscores the upside potential of the asset.
On the weekly time frame, Solana continues to record higher lows, indicating a positive trend despite the recent market volatility. This price action indicates that buyers remain confident in SOL’s long-term prospects, and are stepping in to defend critical support levels. If the $175 level continues to serve as a solid foundation, Solana is well positioned for a quick recovery in the coming days.
Related reading
Staying above the 200-day moving average is a crucial step in building momentum for a broader rally. Analysts and investors are watching this level closely, as it may pave the way for Solana to retest key resistance points and perhaps target new highs. However, if SOL loses this important support, it may face increased selling pressure.
Featured image by Dall-E, chart from TradingView