As the crypto market moves sideways, Solana (SOL) compresses between two key levels. Some analysts suggest that the cryptocurrency is about to break out and reclaim a crucial resistance level, which could trigger the long-awaited retest of the $200 barrier.
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Solana Holds Key Support
After recovering from last month’s downtrend, Solana has been attempting to reclaim the crucial $160 level to continue its bullish rally. The cryptocurrency traded between the $140-$180 range for two months, but briefly lost its post-breakout range in late June.
Two weeks ago, SOL fell below the $130 area, hitting a two-month low of $126 on June 22. Since then, the altcoin has recovered, fueled by last week’s launch of a Solana staked crypto Exchange-Traded Fund (ETF) in the US by Rex Shares.
Following the news, Solana’s price jumped toward the $160 resistance level but was rejected, hovering between the $145-$155 price range for the past week. On Tuesday, SOL fell below the $150 level, hitting the $147 support before bouncing.
Analyst Ali Martinez noted that the $147.59 area is one of the most important support levels for Solana, as losing this level could trigger a pullback to the next key zone around the $141 mark.
Similarly, market watcher Man of Bitcoin affirmed that SOL’s key support to maintain is around $141.91, adding that “a sustained break below this level would suggest that wave-C of (ii) is already underway.”
The analyst previously warned that there is a potential scenario “with one more low in wave-5,” if the cryptocurrency doesn’t hold about the $148 mark. However, maintaining this support would build a base to target the local highs.
SOL About To Retest $160?
Analyst Carl Runefelt from The Moon Show affirmed that SOL is “about to break off” a triangle formation and test the $162 resistance. As the price compresses between the upper and lower boundaries, the analyst suggested that the cryptocurrency’s breakout is around the corner.
Notably, Solana has been forming a one-week symmetrical triangle pattern in the daily chart. If the cryptocurrency successfully breaks above the $152-$153 zone, it could see a 10.87% jump toward the technical target of $167.
The Cryptonomist highlighted that SOL broke out of a multi-day diagonal resistance on Sunday, which was retested and confirmed as support after bouncing around the $147 twice since the breakout.
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The analyst considers that the cryptocurrency is preparing for a continuation of its rally, targeting the one-week high and resistance of $160.
Meanwhile, Crypto Jelle noted that despite the April downside deviation, Solana continues to trade within its $125-$180 Macro Range, currently hovering around the mid-range. To him, “it looks like it’s just waiting for BTC to break out. Once it reclaims $160, $200 should come quickly. Above there, new all-time highs are within reach.”
As of this writing, Solana is trading at $151.51, a 3.6% increase in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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