Solana is currently facing pressure after failing to break above a key resistance level, leading to a pullback during a broader market correction. This recent rejection highlights an important zone that buyers have had difficulty overcoming. If Solana can attract enough buying interest in this lower, consolidated range, it could set the stage for a strong recovery and renewed attempts to surpass the resistance.
At the time of writing, Solana is trading at $155.7, down by 3%, in the past 24 hours. Along with this price action, the total market cap of Solana reached $81.43 billion, with a 24-hour trading volume of $3.43 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 significant bullish rally, Solana has now undergone a sharp correction and is currently trading at $155.70. This pullback has brought the price near important support levels, and market sentiment will largely depend on whether these levels hold.
If the price fails to hold the first level of support at $154.0, we could witness the start of a bearish trend. The next level of support to watch is at $151.7, 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 $150.44, 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 $157.8, closely followed by $161.7 and then $163.5. 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 appears to be positioning itself for a potential bullish breakout after experiencing a strong correction in recent sessions. If it successfully breaks above the current resistance levels, this could trigger a more significant upward trend. In the short term, we might observe a sideways market as the cryptocurrency seeks to establish 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.
