The long-awaited moment has arrived for Solana (SOL) cryptocurrency as it successfully breaks through the crucial resistance level of $150. Investors who closely monitor this digital currency are elated by this achievement, as it indicates a potential continuation of the upward rally. However, there are concerns about the sustainability of this breakout due to the lack of trading volume associated with it.
Although this milestone is significant, the decline in transaction volume raises doubts and suggests hesitation in the market. This hesitation brings into question the ability to maintain the price above this new level. Without a corresponding increase in trading volume, the current level may not be sustained, which could result in a correction in Solana prices.
Technical indicators, such as the 26-day and 50-day exponential moving averages (EMAs), pose additional challenges for Solana. These EMAs are still above the current price, and failure to surpass them with robust volume could trigger a downtrend, reversing the recent gains.
After reaching the $115 support level, the price of Solana experienced a steady increase. It successfully surpassed the resistance levels of $140 and $150, and is now consolidating near the $152 resistance. Moving forward, the price may encounter resistance around the $172 level, with the next major resistance at $185. If it surpasses this level, the price could rise towards $200.
On the downside, initial support is found around the $145 level, with minor support near the $139 zone. If the price falls below this, it could test the key support at $115.
The future evolution of Solana depends not only on market dynamics but also on the success of projects built on its blockchain. Additionally, the ability of buyers to sustain and increase prices will play a crucial role. Interestingly, even meme coins could have a significant impact on Solana’s trajectory.
With technical barriers ahead and the need for greater trading volume, Solana faces a challenging situation in the cryptocurrency market. While the potential for significant advances exists, the possibility of a price reversal also remains a palpable reality.
Please note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.