Nov 06, 2024 12:05
Solana is trading above a critical demand level of around $157, showing signs of a potential bounce after a recent pullback. This critical level has held firm despite market volatility, and now all eyes are on Solana as it attempts to regain bullish momentum. With the U.S. election unfolding and the Federal Reserve’s interest rate decision just around the corner, this week promises to bring heightened volatility across the crypto market. Related Reading: Bitcoin Open Interest Dropped Significantly Investors Cautions Amid US Election Week? 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 likely leads to renewed optimism for SOL investors. However, the risk of further downside remains if Solana fails to secure a position above this critical resistance. As these significant macro events unfold, Solanas next moves will be closely watched, as breaking resistance could signal a larger rally in the near term. Solana Trading Within Bullish Pattern Solana has been a standout performer in this cycle, showing resilience as it holds above a crucial support level that previously acted as resistance. This pivotal moment could determine Solanas near-term trajectory as it battles to reclaim bullish momentum. According to top analyst Carl Runefelt, who shared insights on X, Solana faces a critical test at a descending resistance level that has consistently capped its gains. Runefelts technical analysis, focused on the 2-hour SOL chart, highlights this resistance around the $164 mark. He suggests a confirmed breakout above this level would likely propel Solana higher, signaling a return to bullish price action. However, theres potential for sharp price swings this week, with the U.S. election and Federal Reserve interest rate decision creating an environment ripe for uncertainty and market manipulation. These macro events have the potential to significantly impact Solanas movement, making the resistance break even more critical. Related Reading: Ethereum Risk-To-Reward Ratio Is Too Good To Pass Up Top Analyst Sets $6,000 Target If Solana breaches this resistance and establishes support above $164, it could attract bullish sentiment, pushing the altcoin toward new local highs. However, failure to do so could lead to increased selling pressure and a risk of a retracement, especially if broader market volatility intensifies. As such, the upcoming days will be crucial for Solanas path forward, with traders and investors closely monitoring this key level. SOL Price Action: Key Levels To Watch Solana (SOL) is trading at $161 after a recent bounce from local lows at $155. This move has established a strong support base of around $155, which has proven crucial in holding off further downside. For bullish momentum to take hold, SOL now needs to clear the $165 resistance level, which would confirm the potential for upward price action. A sustained push above $165 could signal strength and encourage buyers, paving the way for further gains. However, a retracement is likely if SOL fails to break above this critical level. In this scenario, the price could fall back to the subsequent demand zone around $150, which aligns closely 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 floor. Related Reading: Solana Likely To Target $200 If It Holds Current Support What To Expect This consolidation phase places SOL in a pivotal position, with price direction largely dependent on its ability to overcome $165. As traders watch closely, this technical setup suggests that SOLs next move will likely define its short-term trend, with $150 as a key fallback level if the bullish case doesnt materialize. Featured image from Dall-E, chart from TradingView
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