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Solana is trading above the critical demand level of around $157, showing signs of a potential rebound after the recent pullback. This critical level has held despite market volatility, and now all eyes are on Solana as he attempts to regain upward momentum.
With the US elections approaching and an interest rate decision by the Federal Reserve just around the corner, this week promises to spark increased volatility in the cryptocurrency market.
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Senior analyst and investor Carl Runefelt shared technical analysis suggesting that Solana must break above a key resistance level in the coming days to restore the strong uptrend. Ronfelt notes that this resistance has kept the price in check, and the breakout will likely lead to renewed optimism for SOL investors.
However, the risk of further decline remains if Solana fails to secure a position above this crucial resistance level. With these important macro events unfolding, Solana’s next moves will be closely watched, as a break of resistance could indicate a larger near-term upside.
Solana trades within a bullish pattern
Solana has been an outstanding performer this session, showing resilience as it remained above a crucial support level that had previously served as resistance. This pivotal moment could determine Solana’s near-term trajectory as he struggles to regain upward momentum.
According to senior analyst Carl Roenfeldt. Who shared thoughts about XSolana faces a critical test at the descending resistance level that has consistently limited his gains. Runefelt’s technical analysis, focusing on the 2-hour SOL chart, highlights this resistance around the $164 level.
It indicates that a confirmed break above this level would push Solana higher, signaling a return to bullish price action.
However, there is potential for sharp price fluctuations this week, with the US elections and the Federal Reserve’s interest rate decision creating an environment conducive to uncertainty and market manipulation. These macro events have the potential to significantly impact Solana’s movement, making breaking resistance even more important.
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If Solana breaks this resistance and establishes support above $164, it could attract bullish sentiment, pushing the altcoin towards new local highs. However, failure to do so may increase selling pressure and risk of retracement, especially if broader market volatility intensifies. As such, the coming days will be crucial for Solana’s path forward, as traders and investors are watching this key level closely.
SOL Price Action: Key Levels to Watch
Solana (SOL) is trading at $161 after the recent bounce from local lows of $155. The move established a strong support base around $155, which proved important in fending off further decline.
For bullish momentum to take hold, SOL now needs to break above the $165 resistance level, confirming the potential for upward price action. A sustained rise above $165 could signal strength and encourage buyers, paving the way for further gains.
However, a rebound is likely if SOL fails to break through this critical level. In this scenario, the price could pull back to the subsequent demand zone around $150, which closely aligns with the 200-day moving average (MA). The 200-day moving average is a widely observed indicator and often acts as a strong support level in technical analysis, consolidating the $150 area as a potential floor.
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This consolidation phase puts SOL in a pivotal position, with the price direction largely dependent on its ability to overcome the $165 level. While traders are watching closely, this technical setup suggests that SOL’s next move will likely determine its short-term trend, with $150 as a key fallback level if the bullish case does not materialize.
Featured image by Dall-E, chart from TradingView