Solana is currently in a consolidation phase following a strong bullish run, with price action stabilising between key technical levels and momentum indicators signalling a pause in upward movement. Despite ongoing bullish sentiment and renewed investor interest, reflected in rising spot volumes and a constructive technical structure, SOL faces notable resistance near recent highs, causing the market to trade within a defined range.
At the time of writing, Solana is trading at $171.7, down by 1.2%, in the past 24 hours. Along with this price action, the total market cap of Solana reached $89.52 billion, with a 24-hour trading volume of $4.05 billion.
In this overview, we will analyse the key technical levels and trend directions for Solana to monitor in the upcoming trading sessions. The chart mentioned below is based on the 15-minute timeframe.
Solana Chart Analysis & SOLUSD Price Action.
After a strong bullish rally, Solana experienced a sharp correction and is currently trading at $171.7. This pullback has brought the price close to key support levels, and the market sentiment will depend heavily on whether these levels hold or not.
If the price fails to hold the first level of support at $171.2, we could witness the start of a bearish trend. The next level of support to watch is at $168.9, which is crucial for maintaining a bullish outlook. If the price cannot sustain above this level, a deeper correction could take place, potentially leading to a free fall toward the next support at $165.4, which would mark a significant drop.
On the other hand, if Solana finds buying strength and the price starts moving upwards, we can identify several key resistance levels that traders should monitor. The first level of resistance is around $175.5, closely followed by $179.3 and then $183.72. If the price breaks through these resistance levels with strong momentum, it would suggest further upward movement and potentially indicate that Solana is in a stronger bullish trend.
In Closing
Currently, Solana appears to be gearing up for a potential bullish breakout after a period of range-bound consolidation in the previous trading sessions. A successful break above these resistance levels would likely trigger a more significant upward trend, potentially leading to a sideways market in the short term as the cryptocurrency seeks new support levels.
However, if the resistance levels continue to hold, the market could shift into a bearish phase, with further downward movements likely.
Traders should closely watch these key support and resistance levels as they present potential entry points for both long and short positions, depending on how the price behaves around these levels.
