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Solana (SOL) is now trading around an important supply area after an impressive 26% rally since September 18, following the Fed’s announcement of interest rate cuts. This sharp rise has sparked optimism among analysts and investors, who hope Solana can soon reach all-time highs.
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Many in the cryptocurrency space believe Solana is poised for further gains, and some expect it to outperform the broader market in the coming months. One of the leading analysts, Carl Runefelt, shared a technical analysis of X, highlighting the potential for a parabolic move once SOL breaches the yearly high.
With growing interest in Solana’s strong fundamentals and technical strength, the market is watching closely to see if SOL can maintain its upward trajectory and deliver the massive gains many are anticipating.
As Solana hovers near these key levels, the next few days could be crucial in determining whether he continues his upward march or faces renewed selling pressure.
Solana to $200 before new ATH
Solana (SOL) is now testing a key liquidity area, and investors are closely monitoring the next price action. After the uptrend over the past two weeks, many are anticipating a rally that could push SOL higher. However, there are still some concerns that Solana may underperform this cycle compared to other leading altcoins, which have shown stronger market activity.
Prominent cryptocurrency analyst Karl Roenfeldt recently weighed in Detailed analysis of Xhighlighting the bullish “cup and handle” pattern forming in Solana’s price action. This pattern, which is often seen as a signal of continued bullish momentum, has an obvious resistance level around $200. Runefelt believes that once Solana passes this key level, the price could turn parabolic, with the next major target being the all-time high (ATH) at around $260.
In his analysis, Roonevelt emphasizes that a break of the $200 resistance level will be decisive for Solana’s price action. Once that happens, expect a fast and violent move to new highs.
The cup and handle formation is a classic bullish continuation pattern that often results in sharp price increases, indicating that Solana may be poised for a major breakout.
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As market sentiment remains bullish and Solana tests critical levels, the next few weeks could determine whether the asset delivers the massive gains many are anticipating.
SOL testing of critical supplies
Solana (SOL) is trading at $156, after a 13% move from last week’s lows. The price has successfully reclaimed the 200 daily moving average (MA) at $154, holding it as support – a bullish signal that could push SOL to higher levels soon.
However, SOL is facing resistance at the local high of $163, which it has been struggling to break. The bulls need to push the price beyond this critical level to trigger a rally towards the yearly high at around $210. This should reinforce positive sentiment around Solana as investors and traders look for confirmation of a larger upward move.
On the downside, if SOL fails to clear the $163 resistance, a bounce back to lower demand levels around $140 becomes more likely. This will represent a critical test of the asset, as failure to maintain support at these lower levels could weaken the bullish momentum built over the past few weeks.
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With SOL hovering near key levels, the next price action could pave the way for a rally toward new highs or a deeper pullback.
Featured image by Dall-E, chart from TradingView
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