Solana Aims to Break Key Resistance Level to Regain Bullish Momentum
Solana is currently trading above a critical demand level of approximately $157, showing signs of potential recovery after a recent pullback. This level has remained stable despite market volatility, and attention is focused on Solana's efforts to regain bullish momentum.
Upcoming U.S. elections and the Federal Reserve's interest rate decision are expected to increase volatility in the crypto market this week.
Analyst Carl Runefelt shared a technical analysis indicating that Solana must break above a key resistance level soon to resume a strong uptrend. He notes that this resistance has constrained price movements, and a breakout could lead to renewed optimism among SOL investors.
However, risks of further downside exist if Solana fails to maintain a position above this critical resistance. As macroeconomic events unfold, Solana’s performance will be closely monitored, as breaking resistance may indicate a larger rally ahead.
Solana Trading Within Bullish Pattern
Solana has demonstrated resilience by holding above a crucial support level that previously acted as resistance. This moment could influence Solana’s short-term trajectory as it seeks to regain bullish momentum.
Runefelt highlights that Solana faces a significant test at a descending resistance level around the $164 mark. A confirmed breakout above this point would likely signal a return to bullish price action.
Potential for sharp price fluctuations exists this week due to the U.S. election and Federal Reserve interest rate decision, creating an environment susceptible to uncertainty and market manipulation. These events could significantly affect Solana’s movement, making the resistance break increasingly important.
If Solana breaks this resistance and establishes support above $164, it may attract bullish sentiment, potentially leading to new local highs. Conversely, failure to do so could result in increased selling pressure and a risk of retracement, particularly if market volatility escalates. The upcoming days will be crucial for Solana, with traders monitoring this key level closely.
SOL Price Action: Key Levels To Watch
Solana (SOL) is trading at $161 after bouncing from local lows at $155, establishing a strong support base that has been effective in preventing further declines.
For bullish momentum to develop, SOL needs to surpass the $165 resistance level, which would confirm the potential for upward price movement. A sustained push above this threshold could indicate strength and encourage buying activity, facilitating further gains.
Failure to breach this critical level may lead to a retracement, potentially bringing the price back down to the next demand zone around $150, aligning with the 200-day moving average (MA). The 200-day MA is often regarded as a strong support level, reinforcing the $150 zone as a possible floor.
This consolidation phase places SOL in a pivotal position, with price direction contingent on overcoming $165. Traders are observing closely, as this technical setup suggests SOL’s next move will likely define its short-term trend, with $150 serving as a fallback level if bullish momentum does not materialize.
Featured image from Dall-E, chart from TradingView