TLDR
- SOL is trading above $168 with resistance at $172 and support at $165
- A bullish “golden cross” pattern is forming on SOL’s daily chart
- The 200-day EMA at current price levels is acting as a critical support zone
- Previous golden cross resulted in 90% gains over two months
- Trading volumes surged 132% in 24 hours as the token hits key technical level
Solana (SOL) is currently consolidating in a tight trading range as traders watch for the next directional move from this popular cryptocurrency. After forming a base above $160, SOL has shown renewed strength, climbing above several key resistance levels and now holding firm above the 100-hourly simple moving average.
The asset broke above a bearish trend line with resistance at $167 on the hourly chart, showing increased buying pressure. SOL is now trading above $168 but facing resistance near the $172 level, which corresponds to the 76.4% Fibonacci retracement level from its previous swing high of $177 to the low of $160.
Technical indicators show a mixed picture. The hourly MACD appears to be losing momentum in the bullish zone, while the RSI remains above the 50 level, suggesting moderate upward strength.
On the upside, SOL faces resistance at $172 and $176, with $180 representing a major hurdle. Breaking above $180 could trigger another steady increase toward $192 and potentially the psychologically important $200 level.
Technical Pattern Forming
A key technical development is taking place on the daily chart – a “golden cross” pattern seems poised to form. This occurs when the 21-day EMA crosses above the 200-day EMA, typically considered a strong buy signal by technical traders.
The last time this pattern emerged, SOL experienced a 90% price increase over just two months. However, market manipulation followed that signal, with the price briefly dropping below the 200-day EMA twice in what traders call a “bear trap.”
Today’s session is especially important as SOL is testing the 200-day EMA, which serves as critical support. Trading volumes have surged 132% in the past 24 hours, indicating heightened market interest at these levels.
If SOL fails to maintain its position above the 200-day EMA, it could suggest weakness. However, if it briefly drops below this level and then recovers, it might signal another bear trap and support a bullish outlook.
Despite recent market volatility, SOL has managed to trim its year-to-date losses from around 40% to just 15%. This compares favorably to Ethereum’s 27% decline over the same period.
The strong price action comes despite potential challenges on the horizon. Ethereum’s upcoming Pectra upgrade could threaten Solana’s dominant position as the preferred blockchain for meme coins. Solana has thrived with platforms like Pump.fun due to its low transaction costs and robust scalability.
If SOL fails to break above the $172 resistance, downside support exists at $168 and $165. A break below $165 could send the price toward $162, with further support at $150 if selling pressure intensifies.
For now, the price remains in a consolidation phase, and traders are watching closely for a decisive move above $172 or below $165 to confirm the next directional trend.
The coming days will be crucial in determining whether SOL can capitalize on the potential golden cross formation and push toward higher price levels or if it will retreat to test lower support zones.
One factor that may influence SOL’s price action is its continued attractiveness for developers and investors, particularly in the meme coin space, where Solana has established itself as a leading platform due to its cost efficiency and speed.
The price is now at a technical crossroads, with the test of the 200-day EMA likely to determine the short-term direction for this cryptocurrency.
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