Article Summary
Solana (SOL) has been struggling to maintain momentum after a rally that saw it peak around the $183 level on May 14. It has been pulling back to retest a key support zone near $166. Currently, Solana is trading around $169.43, up slightly by 0.70% on the day, as it attempts to defend this crucial support level and build a foundation for another upward move. A breakout above either the $177.51 or $183.86 resistance would set the stage for another move toward the $190 to $200 region for Solana.
What This Means for You
- Be prepared for a potential surge in Solana’s price if it breaks the $177.51 or $183.86 resistance levels.
- Stay cautious and monitor Solana’s trading volume as it has declined recently, indicating a need for new momentum to drive the price through resistance levels.
- Consider the possibility of a short trade if Solana fails to hold the $166 support level and retests the deeper $142.25 support.
- Stay informed about Solana’s market movements for potential trading opportunities.
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Solana (SOL) has struggled to maintain momentum after a rally that saw it peak around the $183 level on May 14. Since then, Solana’s price action on the 4-hour chart hasn’t given a clear direction, with the cryptocurrency pulling back to retest a key support zone near $166.
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At the time of writing, Solana is trading around $169.43, up slightly by 0.70% on the day, as it attempts to defend this crucial support level and build a foundation for another upward move. Interestingly, a technical outlook on the TradingView platform has pointed to the paths Solana might take in the coming days.
$166 Support Holds Repeated Tests, Break Above $177 Or $183 Will Be Bullish
According to a recent analysis posted by TradeCityPro on TradingView, the $166.82 level is serving as a key short-term pivot for Solana. After a bullish leg that began at $142.25 and extended to $177.51, the asset experienced a fake breakout attempt beyond that resistance and was swiftly rejected at $183.86.
This rejection brought the price back below $177.51 and into a retest of the $166.82 region. Notably, this support level has been tested twice so far and has held firm. The 4-hour chart is showing strong bullish candles forming around $166, which is an indication of a strong buying interest at this price level.
Keeping this in mind, a breakout above either the $177.51 or $183.86 resistance would be the go-ahead for a long position, especially if accompanied by the formation of a higher low and higher high beforehand.
Until such a breakout occurs, the current setup is one of indecision. A successful breach and daily close above $177 backed by rising volume would likely set the stage for another move toward the $190 to $200 region for Solana.
Key Terms
- Solana (SOL)
- Support level
- Resistance level
- Breakout
- Trading volume
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