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Solana (SOL) is trading around a crucial ask level at $165, after pulling back from its recent highs of $183. This level is pivotal for SOL, as losing it could trigger a deeper correction, putting the altcoin at risk of further decline.
However, prominent analyst Carl Roenfeldt shared technical analysis that suggests Solana may be poised for a short correction before launching higher to retest local highs.
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Runefelt’s analysis highlights signs of renewed SOL strength, suggesting that the altcoin is poised for a move that could challenge recent highs over the next few days. This bullish setup is highly dependent on Solana holding support at $165, which could serve as a springboard for further upside momentum.
As the cryptocurrency market closely watches Bitcoin bid to reach a new all-time high, Solana investors are bracing for potential volatility. In this uncertain landscape, Solana remains a focal point for investors who see opportunity if support holds steady.
Solana Holdings Key Demand Level
Solana (SOL) has emerged as one of the strongest performing altcoins this cycle, attracting significant attention as it tests a key demand level that could push it towards new highs. A prominent analyst and investor Carl Runefelt recently shared technical analysis on XSuggesting that SOL may briefly drop to around $160 before starting to push to retest its recent high at $180.
According to Ronfelt, this $160 level represents an important support area for Solana, as stability above it is necessary to maintain the altcoin’s bullish momentum and confirm its continued uptrend. Roenfeldt’s analysis underscores the importance of this support level in enhancing Solana’s potential for gains, suggesting that it could serve as a springboard for a significant rally.
If SOL manages to hold above $160, a rally to test local highs would not only boost confidence among investors, but would also pave the way for Solana to push into new territory if broader market conditions remain favorable.
Next week could be pivotal for SOL as the market braces for increased volatility as the US election approaches (November 5) and Bitcoin approaches all-time highs.
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As investors closely monitor macro events and Bitcoin’s movements, Solana’s technical setup at around $160 will be a focal point for those seeking to capitalize on the altcoin’s potential gains. If Solana maintains its bullish structure, it could play a major role in driving the altcoin market forward this cycle.
Technical SOL levels to monitor
Solana is trading at $166 after a slight bounce from the $163 level, maintaining a strong position above the critical $160 support area. This level has proven to be a vital threshold for SOL, as continued consolidation here could pave the way for a rally towards higher resistance levels.
If buyers are successful in defending the $160 level, it could serve as the basis for a climb to $183 and possibly beyond, with a potential test of higher supply areas.
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Analysts are closely monitoring this level, as it may reinforce SOL’s bullish structure or indicate the need for further consolidation. However, a break below $160 would likely trigger a deeper correction, prompting traders to recalibrate their expectations as Solana seeks lower support levels. The next few days will be crucial as the market evaluates SOL strength at $160 and prepares for potential moves to new highs.
Featured image by Dall-E, chart from TradingView
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