Solana (SOL) recently pulled back to the $137 level, a key point that could determine its next move in the market. As the cryptocurrency tests this resistance, market participants are closely watching to see if bears will seize the opportunity to push prices lower or if bulls will capitalize in this withdrawal to ignite breakout.

This article aims to analyze Solana’s recent pullback to $137 and assess whether bears can regain momentum to push the price lower or whether bulls will operate this momentum to trigger a breakout. By analyzing key technical indicators, the market sentimentAND potential Our goal is to provide investors and traders with a comprehensive look at SOL’s potential next moves and what to look out for during this crucial phase.

Currently, Solana is trading at around $135, up 4.66%. The cryptocurrency boasts market capitalization of over $63 billion, with a trading volume of over $2 billion. Over the last 24 hours, Solana’s market capitalization is up 4.70%, while its trading volume is down 6.89%.

Market Review: SOL Recent Move to $137

On the 4-hour chart, Solana gained significantly bullish momentum, heading towards $135 and forming multiple positive candles just below the 100-day elementary moving average (SMA). This move up suggests growing buying interest. However, the proximity to the 100-day SMA indicates that bulls will need to maintain their momentum to overcome this resistance and push higher.

Additionally, on the 4-hour chart, the Relative Strength Index (RSI) has risen to 48% after bouncing off the oversold zone and is currently trying to break above the 50% level. This upward RSI change indicates strengthening buying pressure, which could support further positive movement if it continues.

On the daily chart Solanum is showing signs of a bullish attempt towards the $137 level while remaining below the 100-day SMA. A bullish momentum candle formed in the previous trading session, suggesting a potential move up despite its current position below the key moving average.

Finally, the 1-day RSI suggests that Solana may extend the current pullback. The signal line, which previously fell to 34%, is now showing signs of recovery and is currently at the 40% level. So this upward move could indicate a potential change momentumwhich suggests that SOL may regain its bullish strength as it progresses.

Key Levels to Watch: Solana Resistance and Support Zones

Monitoring key support and resistance levels will be key as Solana navigates its current price action. Immediate resistance is at $137, which could pose a challenge to the ongoing bullish momentum. If Solana breaks above this resistance, that could be its target higher levels, potentially testing fresh highs.

On the other hand, a key support level to monitor is around $118. If SOL fails to break through resistance at $137, it could face further declines, potentially falling towards $118 and reaching an even lower level support zones.

Featured image from Adobe Stock, chart from Tradingview.com