Solana Set for Volatility as SOL Price Tests $160 Resistance

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Solana (SOL) surged past a significant resistance level on Friday, enhancing the bullish momentum that started over a week ago. Consequently, some analysts speculate that the fifth-largest cryptocurrency by market capitalization may be poised for a substantial bull run as “Uptober” approaches.

Solana Retests $160 Resistance

The rally for Solana began last week following a market upswing prompted by the US Federal Reserve’s interest rate cuts. This increase allowed the cryptocurrency’s value to surpass the $140 resistance level, which subsequently turned into a new support level.

Throughout the past month, SOL struggled to break above this crucial point, instead trading within the $130-$139 range. This stagnation raised concerns among many investors and market analysts, leading them to believe the cryptocurrency was at risk of a significant correction.

Since the onset of the bullish momentum, Solana has experienced a 23% increase, surpassing the $150 mark earlier this week. Analysts suggest that reclaiming this level could drive the price toward the next major resistance point.

On Friday, Solana breached the vital resistance point for the first time in a month, reaching $160 for the first time since late August. As of now, SOL achieved a daily high of $160.68, briefly holding above this significant level.

This spike seemed to be energized by the “bullish vibes” surrounding the recent release of Binance’s founder Changpeng Zhao (CZ) from prison. Expectations of his release further fueled a positive market sentiment, contributing to SOL’s 4% rise within an hour, alongside Bitcoin reaching $66,000.

Is SOL Price About To “Go Insane”?

Analyst Crypto Horn Harris noted Solana’s price action on the weekly chart, stating it “looks nothing short of insane right now.” He emphasized that SOL has retraced the Relative Strength Index (RSI) “properly” while performing a “perfect reset” of the 50-day Moving Average (MA).

According to the analyst, this performance suggests that the cryptocurrency could soon challenge the cycle’s high of over $200 and shift toward higher targets. WiseAnalyze indicated that SOL’s price “is still very low,” implying that investors still have the opportunity to “join that trend.”

The trader set a breakout target for the cycle at $400, “but it could increase.” Nonetheless, he acknowledged the potential for another rejection, which could result in a pullback to the $108-$120 support zones.

Likewise, Matthew Dixon also predicted a retracement for Solana. He believes a pullback is imminent, as several indicators suggest a correction is on the horizon. However, the extent of the decline remains uncertain.

Dixon mentioned that the price targets for SOL will depend on whether “the price action from the low forms an ABC or 123 pattern.” Regardless, he believes “a retrace is likely.”

Crypto analyst Byzantine General considers that SOL’s chart appears “pretty crazy.” He pointed out that Solana seems to be forming an Adam and Eve (A&E) double-bottom pattern, with the confirmation line situated around the $160 mark.

Based on this analysis, Solana’s value “could really take off,” as there is potential for a breakout toward the $200 resistance level if it can successfully reclaim this key support.