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Solana (SOL) is now trading in a key supply zone after a surprising 26% surge since September 18, following the Federal Reserve’s interest rate cut announcement. This sharp rally has sparked optimism among analysts and investors, who hope that Solana can soon reach new highs.
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Many in the crypto space believe that Solana is destined for further gains, while others expect it to outperform the broader market in the coming months. One prominent analyst, Carl Runefelt, shared a technical analysis on X, highlighting the potential for a parabolic move if SOL breaks from its annual high.
With increasing attention on Solana’s strong fundamentals and technical strength, the market is watching closely to see if SOL can maintain its upward trajectory and deliver the big gains many expect.
With Solana hovering near these key levels, the next few days could be crucial in determining whether it will continue its upward march or face renewed selling pressure.
Solana Up To $200 Before New ATH
Solana (SOL) is now testing a critical liquidity spot, and investors are closely watching the next price move. After the bullish run of the past two weeks, many are expecting a surge that could drive SOL higher. However, one concern remains that Solana may underperform in this cycle compared to other leading altcoins, which have shown strong market activity.
Renowned crypto analyst Carl Runefelt recently shared a detailed analysis on X, highlighting the “cup and handle” pattern forming in Solana’s price action. This pattern, which is often seen as a signal of continued bullishness, has a clear resistance level at $200. Runefelt believes that if Solana breaks this key level, the price may go parabolic, with the next main target being the all-time high (ATH) around $260.
In his analysis, Runefelt emphasizes that breaking above the $200 resistance will be important for Solana’s price action. Once this happens, it predicts a swift and aggressive move to new highs.
The cup and handle formation is a classic bullish continuation pattern that usually leads to sharp price increases, suggesting that Solana may be set for a major breakout.
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With market sentiment still intact and Solana testing key levels, the next few weeks could determine whether the stock will achieve the many expected gains.
SOL Testing Crucial Supply
Solana (SOL) is trading at $156, following a 13% move from last week’s low. The price has successfully recovered the daily 200 moving average (MA) at $154, we hold it as support-a bullish signal that can push SOL to higher levels soon.
However, SOL is facing resistance at the high price of $163, where it has been struggling. The bulls need to push the price past this key level to trigger a rally to the year high around $210. This will further strengthen the positive sentiment towards Solana as investors and traders look for confirmation of a big upside.
On the other hand, if SOL fails to break the $163 resistance, a return to the low demand levels around $140 is more likely. This will represent an important asset test, as failure to hold support at these low levels could reduce the momentum built over the past few weeks.
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As SOL moves near key levels, the next price move could set the stage for an upside rally or a deep pullback.
Featured image from Dall-E, chart from TradingView