Solana has experienced a significant rally after a long period of decline and consolidation. The price action has broken out of previous ranges, and momentum indicators are showing renewed strength. This recent upward movement indicates growing bullish sentiment and increasing investor confidence, bolstered by rising spot volumes and an improving technical structure. However, despite this positive momentum, SOL is now approaching key resistance zones that were established before the pullback. This situation is leading the market to test critical levels that could determine the next directional move.
At the time of writing, Solana is trading at $164.7, up by 4.1%, in the past 24 hours. Along with this price action, the total market cap of Solana reached $87.73 billion, with a 24-hour trading volume of $6.31 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.
Solana experienced a sharp correction and is currently trading at $164.07. Currently, if the price fails to hold the first level of support at $162.00, we could witness the start of a bearish trend. The next level of support to watch is at $156.6, 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 $149.77, 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 $167.4, closely followed by $171.0 and then $175.3. 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
Solana seems to be preparing for a potential bullish breakout following a strong correction in recent sessions. If it successfully breaks above the current resistance levels, this could initiate a more significant upward trend. In the short term, we might then see a sideways market as the cryptocurrency looks for 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.
