Bitrabo Editorial
Solana (SOL) has been experiencing significant volatility in the crypto market recently, with ups and downs leading to a consolidation phase. Despite this turbulence, Solana remains resilient, catching the attention of analysts and investors who are closely monitoring its performance.
Amidst the consolidation phase, there is speculation about the potential for substantial gains ahead. Market experts predict that Solana could surge towards its previous all-time high of $260 in the near future, driven by its strong ecosystem and increasing adoption.
Technical Analysis of SOL
Renowned analyst Jelle has shared a technical analysis chart indicating a mid-cycle consolidation phase above the $130 mark for Solana. Drawing parallels to a similar consolidation period in 2021 that led to significant price increases, Jelle’s analysis suggests a target of $260, Solana’s previous peak.
According to the analysis, breaking past the $209 yearly high could pave the way for Solana to test the $260 level. This breakthrough would mark a key resistance point and signal the start of a new bullish trend.
As Solana’s price consolidation continues, the upcoming price action will be crucial in determining whether the asset can gather the momentum needed to reach new highs, drawing attention from investors and traders awaiting a potential breakout.
Price Trends and Resistance Levels
Solana is presently trading at $158, above its daily 200 moving average of $151.33, after a notable surge that raised the price by over 10% in two days. The asset faces a critical juncture as it tests local supply levels.
To sustain its upward momentum, Solana must surpass the $163.62 mark, the local high set on August 8. Consolidation above this level would signal strength and potentially lead to further gains, setting the stage for a move towards new peaks.
If Solana fails to break through this resistance, a period of sideways consolidation below $163.62 is expected. This scenario would imply range-bound trading while waiting for a catalyst to drive the price in either direction. The upcoming price action will be vital in determining the asset’s trend continuation or a potential extended consolidation phase.
Cover image from Unsplash, chart from TradingView