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Solana (SOL) has seen high volatility and choppy price action since Monday, testing a crucial supply level that will determine its direction in the coming weeks. As the market continues to rise, most analysts and investors are anticipating a potential rally for SOL, especially with the $160 resistance level weakening under the recent upward pressure.
The cryptocurrency community is closely monitoring these developments, as a breakout of this key resistance could lead to significant gains for the altcoin.
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Senior analyst and investor Karl Roenfeldt recently shared a technical analysis that paints an optimistic picture of Solana’s price action in the next few hours. According to Roonevelt, weak resistance could pave the way for a breakout, with bullish momentum carrying SOL to higher targets.
While the market remains volatile, confidence in Solana’s ability to overcome current challenges is growing. If the supply level is breached, it could mark the beginning of a new uptrend, making SOL a focal point for traders looking for opportunities in the current market landscape.
The next few days will be crucial in shaping Solana’s path, as investors will be closely watching whether the price confirms the expected rise.
A bullish Solana pattern indicates momentum
The entire cryptocurrency market is experiencing extreme volatility, and Solana has not been immune to it, with its price ranging between $148 and $160 since Monday. This consolidation phase has left traders eager to know what direction the altcoin will take in the coming days.
Ronfelt recently Share technical analysis on XHighlighting that Solana is breaking out of the 1-hour falling wedge pattern, which is a bullish signal.
The immediate upside target is $159.6, a level that, if broken and sustained, could trigger a massive rally towards $185, an important move that would put Solana near yearly highs.
Despite this bullish setup, the market remains cautious, and there remains a risk that Solana may fail to reclaim key levels. If the price struggles to break and hold above the $159.6 resistance level, the current consolidation could continue or even lead to a potential pullback, with downside targets near $148. Such a scenario would disappoint bulls looking for a rally and could temporarily dampen market sentiment.
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A confirmed breakout and sustained momentum could signal the beginning of a new bull phase, attracting retail and institutional investors.
However, the risk of a failed breakout looms large, keeping market participants on edge. Traders are watching closely as Solana’s next move will likely set the tone for his performance over the next few weeks. If it breaks resistance, SOL could be on its way to challenging yearly highs.
Technical levels of viewing
Solana is currently trading at $154 after finding support at the 200-day moving average (MA) at $150.7, a critical level that indicates long-term strength if it holds as a demand zone. The moving average has historically served as a leading indicator of market trends, and staying above it would reinforce SOL’s bullish outlook.
For the bulls to maintain momentum, the price must remain above the 200-day EMA and push to break the crucial resistance level at $160, a level that has capped Solana’s upward move since early August. A breakout of this resistance would signal a potential rise in prices, opening the door to further gains in the coming weeks.
However, if SOL fails to hold above the 200-day moving average and is unable to overcome the $160 resistance level, it risks a corrective move. A drop below the 1D 200 MA could lead to a drop towards $140, a level that will play a pivotal role in determining the next phase of Solana’s price action.
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Bulls and bears alike are watching these key levels closely, as the next move could determine Solana’s near-term performance.
Featured image by Dall-E, chart from TradingView
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