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Solana (SOL) has been experiencing a significant downtrend, with the price making a recent low at $112 following a strong sell-off. Currently, a pullback is occurring from this level, with SOL attempting to regain lost ground. However, the market remains bearish, and key resistance and support levels must be closely monitored.
Key Levels:
- Immediate Resistance: $128-$130 – The price is currently testing this level. A breakout above this zone could push SOL towards higher resistance levels.
- Next Resistance Zone: $145-$150 – If the price successfully breaches the $128-$130 resistance, this area will act as the next major hurdle.
- Immediate Support: $110-$112 – This level has strongly supported the recent sell-off. If broken, a deeper decline is likely.
- Major Support Level: $80-$85 – A breakdown below the $110-$112 support zone could send SOL towards this critical support area.
Technical Indicators:
- Moving Averages:
- The 30-period Moving Average (MA) is currently at $122.4529, indicating a bearish trend.
- The 9-period Exponential Moving Average (EMA) is at $122.9541, suggesting that the price is attempting to consolidate after the recent sell-off.
- Volume Analysis:
- The volume profile indicates increased trading activity around the recent lows, which may signal potential accumulation.
- However, higher volume with upward momentum is required for a confirmed trend reversal.
Market Sentiment & Trend Analysis:
- The overall trend remains bearish, as evidenced by the consistent lower highs and lower lows.
- Caution is advised against entering long positions until the price starts closing above $165-$170, which would indicate a potential trend reversal.
- If SOL fails to break above the $128-$130 resistance, it could face renewed selling pressure, leading to a possible retest of lower support levels.
Conclusion: Solana (SOL) is currently facing key resistance at $128-$130, and a breakout above this level could open the door for further upside towards $145-$150. However, if SOL fails to clear this resistance, the price may decline towards $110-$112, with a further downside risk to $80-$85 in a prolonged bearish scenario.
Given the current market conditions, traders should exercise caution and wait for a confirmed bullish breakout above $165-$170 before considering long positions.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your research before making any trading decisions.
[…] above $170-$180 or a confirmed bullish structure before considering long positions. Until then, SOL remains bearish territory, and short-term rallies should be viewed as potential selling […]