Solana (SOL) remains robust above the $160 threshold following a healthy pullback in the broader market toward earlier demand levels. Despite these fluctuations, Solana has demonstrated resilience, although the past few hours have witnessed a degree of short-term volatility characterized by swift price changes. Investors are keeping a close eye on forthcoming developments as Solana navigates through this uncertain period.
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Prominent analyst Carl Runefelt recently provided a technical analysis indicating a potential rally for SOL in the near future, aiming for $176. His assessment points to key bullish formations, yet worries over a larger market correction could hinder Solana if the downturn becomes more pronounced.
Given the current market volatility, the upcoming days will be critical for SOL. Investors are on the lookout for indications of strength or weakness that could affect price movements. While optimism persists for a possible rise, prudence is advised as the market correction continues.
Solana Testing Previous Supply As Demand
At present, Solana is at a pivotal point, maintaining its position above $160, a price level that previously functioned as resistance since early August. With SOL breaking through this barrier and establishing support, it suggests a possible change in the monthly trend that has kept prices depressed. Investors are keenly observing to see if this transformation leads to further bullish momentum.
Crypto analyst Carl Runefelt has recently shared a technical analysis on X, providing insights into Solana’s near-term perspective. He presented a 1-hour chart displaying a symmetrical triangle, a bullish indicator that often precedes strong price movements.
The upper boundary of this triangle is around $168, and Runefelt indicates that if SOL can break above this hurdle, the next target would be $176. Achieving this would signify a substantial move towards new local highs, further reinforcing Solana’s bullish trajectory.
As Solana continues to stay above $160, the market remains in anticipation. Investors are maintaining patience, recognizing that the next hours and days could be decisive for SOL’s price dynamics.
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Should the bullish pattern develop and a breakout occurs, it might trigger a notable rally. However, until that breakthrough is realized, traders are exercising caution, aware that short-term volatility could still affect Solana’s performance.
Technical Levels To Watch
Currently, Solana is trading at $165 after encountering resistance at the $171 level, which could keep prices subdued for a few days to weeks. Despite this obstacle, SOL has shown tenacity, bouncing back from the daily 200 moving average (MA) at $150 and successfully surpassing the $160 resistance. This breakout is a significant occurrence, indicating potential upside as the broader market begins to rise again.
Maintaining a position above the $160 mark is vital for SOL, reflecting investor confidence and indicating strength in the price movements. Sustaining this support level would instill optimism regarding Solana’s potential to experience a rally and achieve new yearly highs in November.
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The next few days will be critical in assessing whether SOL can continue its bullish trend or if prolonged consolidation below $171 is forthcoming. Investors are meticulously observing for signs of strength and a sustained upward push.
Featured image from Dall-E, chart from TradingView
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