Solana Shows Signs of Recovery
Solana (SOL) is showing early indications of a recovery after facing several weeks of downward pressure. The cryptocurrency is currently trading near $135, having bounced from recent channel support levels. Price action is testing critical resistance at $140, a level that has previously rejected multiple breakout attempts.
The price has moved above short-term moving averages, accompanied by an increase in daily trading volume. This suggests a potential shift in momentum, attracting renewed attention from analysts.
Solana Tests Resistance After Breakout Attempt
Solana (SOL) has begun to exhibit signs of recovery following a period of consistent decline. The asset has risen by 4.17% in the past 24 hours and is currently trading around the $135.00 mark. This upward movement is occurring as the token attempts to break free from a descending channel that has been forming in recent weeks.
The short-term trend has seen a slight shift, supported by the price moving above the 9-day exponential moving average (9EMA). Trading volume has also seen an increase, with a 24-hour volume reported at $10.87 billion. Analysts are observing a return of buying pressure as the price approaches the upper boundary of the descending pattern.
According to Alpha Crypto Signal, "The top of the channel could mark a potential breakout point, especially if volume continues to rise." While the recent green candles indicate building momentum, confirmation is still required for a sustained move above the resistance level.
Key Price Levels Hold Short-Term Direction
SOL is currently encountering short-term resistance between $139.80 and $140. This particular level has acted as a barrier, rejecting several rallies over the past month. A successful breach above this zone would be the initial step before the price can challenge the next significant area around $145, which represents the high-volume node from the last two years.
Daan Crypto Trades noted that the $145 level is "a key area" locally. If the price surpasses this point, the subsequent target could be approximately $155. However, the token must first reclaim strength above the $140 resistance.
Support for SOL is situated between $133.50 and $134.80. Maintaining this zone is crucial for sustaining the current upward momentum. A fall below this level could lead to the price revisiting the $129.80 area, where recent lows provided temporary relief.
The broader outlook is now centered on whether SOL can successfully exit the descending channel. The presence of higher volume and increasing buy interest lend weight to the possibility of a breakout. Nevertheless, the market is awaiting confirmation before any further upside can be established.