Solana (SOL) has been undergoing notable volatility and erratic price movements since Monday, testing a vital supply level that will influence its direction in the upcoming weeks. As the market continues to ascend, many analysts and investors are hopeful for a possible surge in SOL, particularly as the $160 resistance level seems to be weakening under the recent upward momentum.
The crypto community is keenly observing these changes, as breaching this significant resistance could result in considerable gains for the altcoin.
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Renowned analyst and investor Carl Runefelt recently provided a technical analysis that suggests a bright outlook for Solana’s price action in the hours ahead. According to Runefelt, the weakening resistance could allow for a breakout, with bullish momentum potentially driving SOL to higher targets.
Even amid market volatility, confidence in Solana’s capability to surmount current obstacles is on the rise. If the supply level is surpassed, it could signal the commencement of a new upward trend, making SOL a prime target for traders seeking opportunities in the current market environment.
The coming days will be critical in determining Solana’s future, as investors will closely track whether the price validates the expected rally.
Solana Bullish Pattern Indicates Momentum
The entire cryptocurrency market is facing high volatility, and Solana is no exception, with its price swinging between $148 and $160 since Monday. This period of consolidation has left traders eager to discern the impending direction of the altcoin.
Runefelt recently posted a technical analysis on X, highlighting that Solana is exiting a 1-hour Falling Wedge pattern, which is a bullish signal.
The immediate target for upside is $159.6, a level that, if broken and maintained, could result in a significant rally toward $185—an important move that would place Solana near its yearly highs.
Despite this favorable setup, the market continues to exercise caution, and there remains a risk that Solana might not reclaim crucial levels. Should the price falter to break and sustain above the $159.6 resistance, the current consolidation phase may linger or even lead to a potential pullback, with downside targets near $148. Such a situation would disappoint bulls hoping for a surge and could temporarily dampen market sentiment.
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A confirmed breakout coupled with sustained momentum could indicate the onset of a new bullish phase, attracting interest from both retail and institutional investors.
Nonetheless, the possibility of a failed breakout looms, keeping market players vigilant. Traders are closely watching as Solana’s next actions will likely influence its performance over the following weeks. If it successfully breaches resistance, SOL could be poised to challenge yearly highs.
Key Technical Levels to Watch
Currently, Solana is priced at $154 after finding support at the 200-day moving average (MA) at $150.7, a critical threshold that indicates long-term strength if it holds as a demand area. Historically, this MA has been a significant indicator for market trends, and maintaining a position above it would bolster the bullish outlook for SOL.
To maintain bullish momentum, the price must remain above the 200-day MA and strive to breach the important $160 resistance, a level that has hindered Solana’s upward movement since early August. A breakthrough at this resistance could ignite a potential price surge, paving the way for further gains in the next weeks.
However, if SOL fails to remain above the 200-day MA and doesn’t surpass the $160 resistance, it risks a corrective move. A dip below the 1D 200 MA could see prices retreating towards $140, a level that will be crucial in determining the subsequent phase of Solana’s price movements.
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Both bulls and bears are attentively monitoring these key levels, as the next movement could dictate Solana’s near-term performance.
Featured image from Dall-E, chart from TradingView
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