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Solana is trading above a critical demand level of around $157, showing signs of a possible rebound after a recent pullback. This critical level has held despite market volatility, and now all eyes are on Solana as it tries to regain bullish momentum.
With the US elections unfolding and the Federal Reserve’s interest rate decision looming, this week promises to bring increased volatility to the crypto market.
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Top analyst and investor Carl Runefelt has shared a technical analysis indicating that Solana must break above a key resistance level in the coming days to regain a strong uptrend. Runefelt notes that this resistance has kept the price in check, and a breakout will likely lead to renewed optimism for SOL investors.
However, the risk of a further decline remains if Solana fails to secure a position above this critical resistance. As these key macro events unfold, Solana’s next moves will be closely watched as breaking through resistance could signal a bigger rally in the near term.
Solana is trading within a bullish pattern
Solana performed extremely well in this cycle, showing resilience as it remained above a crucial support level that previously acted as resistance. This pivotal moment could determine Solana’s near-term trajectory as it battles to regain bullish momentum.
According to top analyst Carl Runefelt: who shared insights about XSolana faces a critical test at a falling resistance level that has consistently limited his gains. Runefelt’s technical analysis, focusing on the 2-hour SOL chart, highlights this resistance around $164.
He suggests that a confirmed breakout above this level would likely push Solana higher, signaling a return to bullish price action.
However, there is potential for sharp price swings this week as the US election and the Federal Reserve’s interest rate decision create an environment ripe for uncertainty and market manipulation. These macro events have the potential to significantly impact Solana’s movement, making the resistance break even more important.
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If Solana breaks this resistance and establishes support above $164, it could attract bullish sentiment, pushing the altcoin to new local highs. However, failure to do so could lead to increased selling pressure and the risk of a retracement, especially if broader market volatility increases. As such, the coming days will be crucial for Solana’s further development, with traders and investors keeping a close eye on this important level.
SOL Price Action: Key Levels to Watch
Solana (SOL) is trading at $161, after a recent rebound from local lows at $155. This move has created a strong support base at around $155, which has proven crucial to averting further downturns.
For the bullish momentum to assert itself, SOL must now clear the USD 165 resistance level, which would confirm the potential for upside price action. A sustained rise above $165 could signal strength and encourage buyers, paving the way for further gains.
However, a retracement is likely if SOL fails to rise above this critical level. In this scenario, the price could fall back to the subsequent demand zone around $150, which is closely aligned with the 200-day moving average (MA). The 200-day MA is a widely observed indicator and often acts as a strong support level in technical analysis, reinforcing the $150 zone as a potential bottom.
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This consolidation phase puts SOL in a crucial position, with its price direction largely dependent on its ability to overcome $165. While traders are watching closely, this technical setup suggests that SOL’s next move will likely determine the short-term trend, with $150 a key pullback level if the bullish case does not materialize.
Featured image of Dall-E, chart from TradingView
