Solana Fails To Break Key Resistance At $106, Analyst Says SOL Could Drop To This Level

January 31, 2024

Solana Shows Imminent Breakout from Inverted Head and Shoulders Pattern; Analyst Predicts SOL Could Reach This Level

Solana’s native SOL token appears to be gaining near-term upside momentum after a turbulent 2023. But key technical resistance now stands in the way of confirming a sustainable trend reversal, according to analysts.

What you'll learn 👉

SOL Breaks Downtrend Resistance

Trader Teshkid points to SOL attempting to clear a key breakdown level at $106, which would put focus on further targets:

“Solana is trying to break through resistance at $106.07. A break above that area flipping that into support watch for a rally to $110 and $115 as the next targets.” Teshkid also mentioned that in case of a rejection, SOL could hit $98.41.

This aligns with the analysis showing SOL in the early stages of breaking its prior declining channel. Reclaiming $106 resistance opens the door for a continued move higher.

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Broader Resistance Still an Obstacle

However, per analysis from altFINS, the higher the macro $100 level, the higher the pivotal threshold for bulls to conquer. Achieving back-to-back daily closes above $100 would confirm upside continuation towards the $125 area.

Source: altFINS – Start using it today

“Bullish breakout from a Channel Down pattern. Traders could wait for a confirmation – if price breaks above $100 resistance, with +25% upside potential back to $125.”

So in essence, while Solana shows encouraging signs of early technical improvements, conviction around a sustainable low still remains lacking. Only a decisive move above the psychologically key $100 resistance can begin repairing the damaged long-term market structure.

However, as Teshkid mentioned, SOL faced rejection at the $106 level and has dropped below $100. SOL is down by 3.7% and is trading at $99.45.

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