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Solana (SOL) is currently trading at a crucial demand level near $163, after bouncing from local highs around $183. This price is an important support area that can determine the direction of the upcoming price movement for SOL. Losing this level could indicate a deeper correction, which could intensify selling pressure and possibly push SOL to retest lower support levels.
However, Senior Analyst Dan shared a technical analysis suggesting that if SOL can hold this “green zone” around the $160 level, it could pave the way for a bounce. Dan points out that in the most optimistic scenario, SOL could hold this support and begin a gradual climb, with the aim of eventually testing the downtrend line it has kept under control. This setup would keep the bullish SOL structure intact, creating a potential entry point for investors looking for a bounce.
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With the broader cryptocurrency market showing volatility and Solana facing this pivotal level, the next few days will be crucial. Traders and investors are watching closely to see if this demand zone can support a reversal, which could see SOL move back towards the recent highs.
Solana holds strong despite the uncertainty
Solana (SOL) has managed to hold above the key support level around $160, despite the recent market volatility and uncertainty. This level is crucial for the SOL price structure, as it is a strong demand zone that can serve as the basis for the next upward move.
Cryptocurrency analyst Dan recently He shared his point of view about XWhich reveals that the “most bullish case” for SOL would be to hold this “green zone” near $160, allowing it to gradually move towards the downtrend line that has capped recent gains.
In Dan’s view, the next attempt at this trend line will likely result in a successful breakout, with the potential to push the SOL price above $200. He points out that waiting for this breakout to be confirmed could be a sound strategy for cautious investors, as there is still plenty of room for upside even after a confirmed reversal. His analysis highlights a confident outlook on SOL’s potential recovery, as he sees this accumulation area as a promising buying opportunity.
However, Dan also acknowledges that there is still a degree of downside risk. If SOL fails to hold above the $160 level, a deeper correction may follow, which could push SOL to test lower support levels.
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For now, the market will be watching this support level closely as a crucial indicator of SOL’s short-term trend. Staying above this level would signal strength and open the door to a potential rally, while a breakdown could lead to a longer bearish phase. As overall market sentiment remains mixed, Solana’s next moves will be crucial for traders and investors alike.
SOL price action
Solana is currently trading at $163 after hitting the 200 4-hour Exponential Moving Average (EMA), a crucial indicator of short-term strength. Staying above this moving average indicates a bullish outlook for SOL, indicating that buyers are stepping in to support the price at this level. If SOL can maintain momentum above the 200 EMA, it can build a foundation for a potential rally to new local highs, perhaps challenging the recent peak around $183.
However, the $160 level remains an important support area. Losing this support would likely lead to significant selling pressure, which could send SOL falling to the $150 range, where more demand may emerge. This area will be closely watched by investors looking for potential accumulation opportunities, as a decline could provide favorable entry points for long-term holders.
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In contrast, a strong push above the current demand level would confirm renewed bullish momentum, paving the way for SOL to target and possibly surpass the recent highs. As SOL hovers around this key technical area, traders will be watching for any decisive move that could indicate the next direction, whether it is a continued uptrend or a bounce back to lower demand levels.
Featured image by Dall-E, chart from TradingView
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