Solana is showing strength by breaking above the critical $171 level – a price that previously acted as a supply and is now a solid demand zone. This level is critical for bulls as staying above it could pave the way for gains in the coming weeks.
Crypto analyst and investor Carl Runefelt recently shared technical analysis indicating that Solana’s current price action remains bullish as long as support continues above this level.
Solana’s ability to turn previous resistance into a support base reflects increased demand that could act as a catalyst for further growth. The market is closely monitoring these moves and the coming days are expected to be crucial for Solana.
If SOL maintains its trajectory above $171, it could create optimism about the uptrend extending. Investors are likely to keep a close eye on Solana’s price dynamics, as any change below this level could alter the near-term prospects for one of the most promising cryptocurrency assets.
Solana tests liquidity
The best investor Carl Runefelt recently shared his thoughts on Xemphasizing the importance of Solana’s head and shoulders pattern. In his analysis, Runefelt noted that a successful retest of the neckline would confirm the strength of the uptrend.
Runefelt’s chart analysis further indicates that as long as SOL remains above the neck line, the bullish momentum is expected to continue and its price target is pegged at $202 in the near term.
This potential upward move has attracted the attention of both investors and traders who view the $202 level as an achievable target if the current uptrend continues. Runefelt’s analysis highlights that the neckline represents a critical level of support – one that, if maintained, could boost purchasing interest. However, any break below this neck line could change the dynamics, potentially leading to a more cautious bias.
With a head and shoulders structure forming, Solana’s price action will be key over the next few days. A successful retest of the neckline could spur further growth, possibly pushing SOL to up-to-date highs.
SOL price action
Solana (SOL) is trading at $172 and continues to rise as it targets a higher supply zone. To maintain this bullish momentum, SOL bulls need to push the price above the critical resistance level of $180. The $180 mark serves as a key resistance, and a break above it could potentially trigger a wave of FOMO (fear of missing out) buying, driving the price even higher. This psychological level may attract greater interest from traders who see a clear breakout as a signal for further gains.
However, maintaining this bullish trend is imperative. If SOL is unable to maintain support above $171, a pullback to lower demand zones is likely. This move could bring SOL back to testing support levels closer to previous lows, which could sluggish the current momentum.
For traders and investors who are closely monitoring the situation, the key indicators are subsequent moves around the levels of $171 and $180. A mighty rally above $180 may suggest continued strength in Solana’s price action. A drop below $171 would signal weakness, indicating a short-lived pause or pullback from the recent rally.
Featured image from Dall-E, chart from TradingView
