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Solana is showing strength as it moves above the key level of $171—a price that used to act as a commodity and is now acting as a hot spot. This level is suitable for the bulls, as holding above could pave the way for a rally in the coming weeks.
Crypto analyst and investor Carl Runefelt recently shared a technical analysis that shows that Solana’s current price action remains strong as long as it holds support above this mark.
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Solana’s ability to turn previous opposition into a base of support shows growing demand, which may act as a catalyst for increased momentum. The market is watching this move closely, and the next few days are expected to be very important for Solana.
If SOL maintains its trajectory above $171, it may trigger an extended bullish outlook. Investors are likely to closely monitor Solana’s price volatility, as any change below this level could change the short-term outlook for one of the most promising crypto assets.
Solana Testing Liquidity
Top investor Carl Runefelt recently shared his insights on X, highlighting the importance of Solana’s head and shoulders pattern. In his analysis, Runefelt noted that a successful neckline test will confirm bullish strength.
Runefelt’s chart analysis shows that as long as SOL remains above the neckline, the bullish momentum is expected to persist, and his target price is set at $202 in the short term.
This potential upward movement has caught the attention of both investors and traders who consider the $202 level as an achievable target if the current bullish trend continues. Runefelt’s analysis emphasizes that the neckline serves as an important level of support – which, if maintained, can drive strong buying interest. However, any break below this neckline can change the momentum, which may lead to a cautious look.
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With a head and shoulders formation, Solana’s price action will be important over the next few days. A successful reevaluation of the neckline could drive growth, perhaps propelling SOL to new highs.
SOL price action
Solana (SOL) is trading at $172, slightly higher as it heads towards a higher supply area. To maintain this bullish momentum, SOL bulls need to push the price above the key resistance level of $180. This $180 mark serves as an important resistance, and breaking it may cause a wave of FOMO (fear of missing out) buying, which may push the price even higher. This psychological level may attract more interest from traders who see a clear breakout as a signal for further gains.
However, maintaining this bullish trend is important. If SOL is unable to maintain support above $171, a return to the most sought-after areas is possible. This move could bring SOL back to test support levels near the previous low, potentially reducing current momentum.
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For traders and investors looking closely, the next move around the $171 and $180 levels are key indicators. A strong push past $180 would suggest continued strength in Solana’s price action. A drop below $171 would indicate weakness, indicating a temporary stop or a pullback from the recent rally.
Featured image from Dall-E, chart from TradingView