Solana (SOL) is holding above the $160 mark after the broader market experienced a significant drop in demand to its previous level. Despite the fall, Solana has shown resilience, although the past few hours have been marked by short-term volatility and rapid price swings. Investors are closely watching Solana’s next steps in this uncertain phase.
Lead analyst Karl Runefelt recently shared technical analysis suggesting a potential rise in SOL in the coming days with a target of $176. His analysis highlights key bullish trends, but concerns about a broader market correction could drag Solana down if the correction intensifies.
With the market on the move, the next few days will be crucial for SOL. Investors watch closely for signs of strength or weakness that could affect price action. While optimism remains about potential growth, caution is warranted as the market correction unfolds.
Solana tests previous supply as demand
Solana is currently at a critical level, holding above $160, a price that previously acted as resistance since early August. SOL broke above this level and found support, signaling a potential shift in the monthly trend that is keeping the price low. Investors are watching closely to see if this shift will lead to continuation of the bullish momentum.
Crypto analyst and investor Karl Runefelt recently shared technical analysis of X, offering insight into Solana’s short-term prospects. It showed a 1-hour chart showing a symmetrical triangle, a bullish pattern that often precedes strong price movements.
The top line of this triangle is around $168, and Runefelt suggests that if SOL manages to break above that level, the next target would be $176. This will mean a significant push towards new local highs, further strengthening Solana’s bullish trend.
As Solana continues to hold above $160, the market is biding its time. Investors are being patient and aware that the next few hours and days could be critical to SOL’s price action.
If the bullish pattern materializes and price breaks out, it could lead to a significant rally. However, until that breakout occurs, traders are remaining cautious, knowing that short-term volatility could still weigh on Solana’s performance.
Tech Levels to Watch
Solana is currently trading at $165 after facing rejection at $171, a key resistance level that could keep the price lower for days or weeks. Despite this setback, SOL showed resilience, bouncing strongly off the daily 200 moving average (MA) at $150 and successfully clearing the $160 resistance. This breakout is an important development that signals potential upside as the broader market begins to rise again.
Staying above the $160 level is critical for SOL as it reflects investor confidence and signals strength in price action. Holding this support level will signal optimism about Solana’s ability to rally to new yearly highs in November.
The coming days will determine whether SOL can maintain its bullish momentum or whether there will be an extended consolidation below $171. Investors are closely watching for signs of strength and a continued surge higher.
Featured image from Dall-E, chart from TradingView
