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Solana is trading above the key necessary level of $157, showing signs of a potential bounce after the recent pullback. This critical level has held firm despite market volatility, and now all eyes are on Solana as it tries to regain bullish momentum.
With the US election unfolding and the Federal Reserve’s interest rate decision just around the corner, this week promises to bring great volatility to the entire crypto market.
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Senior analyst and investor Carl Runefelt shared a technical analysis that shows that Solana must break a key resistance level in the coming days to regain a strong upward trend. Runefelt notes that this resistance has kept the price on hold, and the exit may lead to renewed optimism among SOL investors.
However, downside risks remain if Solana fails to secure a position above this critical resistance. As these major events unfold, Solana’s next move will be closely watched, as a breakout of resistance could indicate a major rally in the near term.
Blame Trading Inside a Bullish Pattern
Solana has been the dominant player in this cycle, showing resilience as it is above a key support level that served as resistance. This key moment could determine Solana’s near-term trajectory as it struggles to regain bullish momentum.
According to senior analyst Carl Runefelt, who shared the information on X, Solana is facing a critical test at a downward resistance level that has consistently achieved its gains. Runefelt’s technical analysis, focusing on the 2-hour SOL chart, highlights this resistance around the $164 mark.
He suggests that a confirmed breakout above this level could lift Solana, indicating a return of bullish price action.
However, there is the potential for sharp price swings this week, with the US election and the Federal Reserve’s interest rate decision creating an environment ripe for uncertainty and market manipulation. These major events have the potential to have a major impact on Solana’s movement, making a break in resistance even more critical.
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If Solana breaks this resistance and establishes support above $164, it could trigger bullish sentiment, pushing the altcoin to new local highs. However, failure to do so could lead to increased selling pressure and reversal risk, especially if broader market volatility increases. Therefore, the coming days will be important for Solana’s path forward, with traders and investors keeping a close eye on this important level.
SOL Value Action: Key Levels to Watch
Solana (SOL) is trading at $161 after a recent bounce from a local low of $155. This move established a strong base of support around $155, which proved crucial in holding further down.
For the bullish momentum to take hold, SOL now needs to clear the $165 resistance level, which would confirm the upside potential. Continued pressure above $165 can show strength and encourage buyers, paving the way for more gains.
However, a reversal can occur if the SOL fails to cross this critical level. In this scenario, the price may return to the next desired area around $150, which coincides closely with the 200-day moving average (MA). The 200-day MA is a widely recognized indicator and often serves as a strong support level in technical analysis, cementing the $150 area as a potential target.
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This consolidation phase puts SOL in a critical position, where the price depends heavily on its ability to overcome $165. As traders watch closely, this technical setup suggests that the next move of the SOL will likely define its short-term trend, with $150 as a key level to fall back on if a bullish case fails to materialize.
Featured image from Dall-E, chart from TradingView
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