Solana (SOL) price action analysis by market analysts has hinted at a potential rally. Analyst Jelle shared his bullish outlook on SOL, suggesting a favorable setup for further price gains.
However, the analysis highlights that certain hurdles could temper this momentum. Similarly, Matthew Dixon, CEO of Evai, provides insights on Solana’s price trends, warning of possible short-term fluctuations.
What you'll learn 👉
Bullish Breakout and Key Resistance Levels
Jelle’s chart centers around a notable breakout from a descending trendline that has been capping SOL’s price since March. This trendline had previously acted as resistance, but the recent breakout suggests a shift from bearish to bullish sentiment.
Solana is currently trading around $166.20, demonstrating upward momentum, with potential resistance levels identified near $180. The key resistance range between $160 and $166 had acted as a cap in the past.
Now that SOL has broken through, analysts see it as an encouraging sign that could support further bullish action. Should SOL sustain above this level, the price may attempt to reach the psychological target of $200, highlighted by Jelle’s leveraged position.
Jelle’s Optimistic Tweet and Market Sentiment
Jelle’s tweet underscores a renewed sense of optimism. The analyst states that SOL “looks pumpy” and indicates his confidence in short-term bullish momentum by opening a leveraged position.
He sets a price target of $200, aligning with the chart analysis that suggests bullish continuation if key resistance zones hold. This upbeat assessment has contributed to market attention, positioning SOL as a token to watch. The psychological significance of $200 could drive further interest, as round figures often act as milestones in market trading.
Potential Pullbacks and Support Zones
The technical analysis also outlines several support levels that may come into play if SOL faces pullbacks. Historical support zones are located between $125-$135 and $145-$150, indicating areas where the price previously found stability.
These levels could serve as fallback points for bulls if the upward trend faces temporary setbacks. Investors will be monitoring these supports to gauge SOL’s strength during potential corrections, and any bounce-back from these levels could renew bullish interest.
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Expert’s Cautionary Note on Short-Term Reversal
Matthew Dixon, CEO of Evai, provides a more cautious perspective. According to Dixon, while Solana’s 50-day and 200-day moving averages (MAs) crossed positively in October 2023, signaling a bull run, the recent trend shows a potential reversal.
The MAs have begun crossing in the opposite direction, hinting at a possible short-term downturn.
However, Dixon remains hopeful, suggesting that despite the anticipated correction, Solana’s overall trend might eventually move higher. This mixed outlook emphasizes the need for investors to stay vigilant and consider both bullish and bearish scenarios when assessing SOL’s future performance.
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