Solana’s bullish trajectory remains intact on a mid-term, but it seems to have reached an exhaustion point as it tests its channel’s upper boundary today. A broader retracement is likely if the price keeps respecting this channel.
Sol has been forming inside an ascending channel since the price dipped to $8 last December. It recovered well after then and subsequently established support at $13 in June and $17.5 in September – all sitting at the channel’s lower boundary.
The price picked up again and began to gain momentum by the day. After six weeks of steady increase, the price tested the channel’s upper boundary and tapped the $35.35 level today as its highest price level in a year. A further increase may bring the price out of this channel.
But looking at the setups from a technical standpoint, the price has reached a critical resistance line on the daily chart after resurging above $31 last weekend. A rejection at the current trading level would trigger a short-term retracement
So far, the price has doubled since it initiated a buy on September 11. While the price continues to respect the channel’s boundaries, Sol would remain trapped until the price breaks out of the ascending channel.
SOL’s Key Level To Watch
If a channel breakup occurs, the potential resistance levels to keep in mind for an increase lie at $38.7 and $40. A further push above the mentioned resistance levels could send the price to $43.
However, if the price continues to respect the channel’s upper boundary, we can expect a quick sell-off to the $32 support level. A drop below this support could slip the price to $29 and $27.18. There’s also support at $22.5 if the price keeps falling.
Key Resistance Levels: $38.7, $40, $43
Key Support Levels: $32, $29, $27.18
- Spot Price: $35
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.