Solana has seen significant volatility in recent months, but cryptocurrency analyst Rekt Capital notes that it has remained range-bound between support at $17 and resistance at $24. After bottoming near $17 earlier this month, Solana rallied +27% to hit its range high around $24 before pulling back slightly.
According to Rekt Capital, this price action is very similar to what Chainlink has experienced over the past several months – becoming range-bound and offering consistent trading opportunities within that range. However, neither Solana nor Chainlink has yet to decisively break out of their trading ranges on the weekly timeframe.
For Solana to confirm a true breakout, Rekt Capital notes that it would need to reclaim the $24 level as support on the weekly chart. So far, the $24 zone has continued to act as resistance and fake breakouts above it have failed. Failed retests of range high resistance as support have preceded downside moves back into Solana’s trading range.
Until Solana can turn previous resistance at $24 into support, Rekt Capital suggests being cognizant of potential downside scenarios. The most probable outcome at this point would be a rejection from the $24 resistance, which has been the case for several months now.
If rejected, Solana could retrace back down into its range, potentially retesting higher low support from earlier this month around $17. However, a retest of support could provide another buying opportunity for Solana before another attempt at breaking its well-established trading range between $17 and $24.
In summary, while Solana’s rally this month has been impressive, Rekt Capital believes it remains range-bound for now between key support and resistance. Decisive breaks above or below this range will be needed to signal Solana’s next major trend, but further upside appears possible within its current parameters. Continued range trading seems likely in the near-term barring a breakout.
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