Solana is testing a key level after weeks of volatile price action and market uncertainty. After the Federal Reserve announced an interest rate cut, Solana rose 26% but quickly fell 17%, reflecting continued turbulence in the broader cryptocurrency market. This edged price movement has left many investors on edge as they wait for another clear signal.

Amid this uncertainty, top analysts are closely monitoring Solana’s next move, with one in particular pointing to the $160 mark as a decisive level that could determine its direction. A break above this level could trigger upside momentum again, while failure to do so could lead to further downside pressure.

The coming days will be critical for Solana as investors assess the market’s trajectory and prepare for potential volatility. With SOL at a key point, both bulls and bears are closely watching whether the price can break through key resistance or undergo further correction.

Solana is testing liquidity below $160

Solana has experienced significant ups and downs over the past few weeks, leaving investors uncertain after the latest decline. Many expected further gains before a pullback, prompting caution in the market. As Solana traded in this volatile environment, the focus shifted to key technical levels that could determine the next substantial move.

The best cryptocurrency analyst Daan shared his thoughts on Xnoting that Solana formed three near-equal highs around the $160 level. He also highlights that SOL is consistently hitting higher lows, which is a sign of potential upside momentum.

According to Daan, this gradual upward drift suggests that Solana could eventually break the $160 resistance level, which would be a key moment for the cryptocurrency.

The reaction at $160 will be key. If Solana manages to break above this level, it could signal a push towards modern highs and a rekindling of bullish sentiment in the market. However, if the price fails to maintain its momentum, Solana could remain in the $120 to $160 range, continuing its sideways move. Investors are watching these levels closely because Solana’s next direction could determine its performance for the rest of the year.

Price Action: Breaking Supply Levels

Solana (SOL) is currently trading at $143 after several days of price volatility. The market is highly volatile and SOL is currently testing the critical $200 4-hour Exponential Moving Average (EMA) at $144.55. This level serves as a key resistance point, and a break above it could signal a bullish continuation for Solana.

If SOL manages to break and hold above the 4-hour EMA 200, the next target for the bulls will likely be $160. A move above $160 could reignite positive sentiment, potentially setting the stage for further gains. However, if SOL does not break the resistance at USD 144.55, a return to lower demand zones is expected.

In the event of a rejection at the 4-hour 200 EMA, Solana could fall to the $127 support level, where traders and traders will be monitoring closely for signs of strength or further risk of loss. Price action over the next few days will be key in determining whether SOL can return to its bullish trajectory or if a deeper pullback is on the horizon.

Featured image from Dall-E, chart from TradingView