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The crypto market experienced a surge on Friday, with Bitcoin leading the rally, gaining 11% since Monday. Despite this, fear remains among Solana investors as the altcoin struggled to join the market’s impulse.
Solana faces serious risks after failing to close above the key $140 level, a price that acted as support since early August and now serves as resistance. Top analysts and investors are urging caution as SOL’s inability to break through this level raises concerns about its short-term outlook.
With Solana currently trading at a critical point, the next few days will be crucial in determining its direction. If SOL fails to reclaim $140, it could face further downside pressure, adding uncertainty to its long-term prospects. Investors will closely monitor Solana’s movements, as a breakthrough could signal renewed strength, while a continued struggle could signal further weakness.
Solana Analyst Urges Caution
Solana investors are now facing doubt amidst the current market environment, as SOL has underperformed compared to Bitcoin and some altcoins. This underperformance has raised concerns, with several investors and analysts calling for caution.
One prominent analyst, Yakuza, shared his detailed technical analysis on X, highlighting both bullish and bearish scenarios for Solana’s price. In his analysis, he predicts that SOL is poised for a significant rally, potentially driving its price up to $290 from its current range. However, he also warns that if the bullish scenario does not materialize, SOL could experience a sharp retracement, falling to as low as $86.
Yakuza emphasizes that Solana has been trading within a descending triangle pattern since March. This pattern has kept SOL in a tight range for nearly seven months, preventing any significant upward movement. With the market now showing signs of a potential breakout, Yakuza cautions that investors need to stay vigilant. The next decisive move could either bring significant gains or lead to a deeper correction.
The key factor for Solana’s price action lies in its ability to hold above current levels and successfully test higher supply zones. If SOL can break through its immediate resistance, it may recover and match or even surpass the broader market’s recent gains.
As the market prepares for its next move, the coming days will be crucial in determining Solana’s long-term direction. Investors are advised to proceed with caution and closely monitor SOL’s price action, as the outcome of this pattern will likely dictate the altcoin’s trajectory for the remainder of the year.
SOL Price Action
Solana (SOL) is currently trading at $139.09 after tagging the 4-hour 200 exponential moving average (EMA) at $139.9, which has been acting as a key resistance level. This EMA has functioned as a supply zone since early August, preventing SOL from maintaining any sustained upward momentum.
For Solana to align with the broader market trend, it must reclaim this level and close above it. Successfully doing so could pave the way for a push to new highs, with the next target being above $163.
However, if SOL fails to close above the 4H 200 EMA, the price is likely to face increased selling pressure. In this scenario, Solana could experience a retracement, testing lower demand zones as investors seek a more stable support level. The most likely target for a pullback would be around the $120 mark, where previous demand has shown resilience.
Featured image from Dall-E, chart from TradingView
