Solana ‘Must Break Descending Resistance’ To Regain Bullish Momentum – Analyst
November 05 2024 - 9:30AM
NEWSBTC
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, Solana’s 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
Solana’s 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. Runefelt’s
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, there’s
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 Solana’s movement,
making the resistance break even more critical. Related Reading:
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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 Solana’s 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 SOL’s next move will likely define its short-term
trend, with $150 as a key fallback level if the bullish case
doesn’t materialize. Featured image from Dall-E, chart from
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