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Solana (SOL) is trading just 6% below its all-time highs, driven by a notable 16% rise from the $212 ask level. The rally has caught the attention of both traders and investors as SOL price action shows a strong bullish trend.
Top crypto analyst Johnny shared his technical analysis on This forecast comes during a period of euphoria, with SOL delivering a surprising performance by soaring more than 55% in less than two weeks.
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The rapid rise has positioned Solana as one of the market’s leading assets, driven by growing demand and strong fundamentals. However, Johnny’s outlook suggests that there could be a healthy pullback on the horizon, potentially offering a key buying opportunity before SOL challenges its historical price levels.
As SOL’s recent performance reignited optimism in the crypto space, all eyes remain on its ability to maintain strength in the face of potential volatility. Will Solana defy expectations and reach new heights, or is a cooldown inevitable?
Solana tests critical supply level
Solana is testing a critical supply level just below $250, following a significant rise that has propelled it closer to its all-time high (ATH). This level serves as a key battleground as it marks the last bastion for sellers before SOL enters price discovery, a phase where it could reach new highs.
Cryptoanalyst Johnny recently shared his perspective on Xhighlighting that while Solana price action remains strong, a temporary pullback to lower levels may be necessary to gain momentum.
According to his technical analysis, SOL could fall into the $220 demand zone, a level he considers crucial for buyers to step in and refuel the rally. Johnny predicts that Solana could stage a strong recovery from there, pointing to an aggressive move above its ATH at $260.
Solana’s bullish momentum cannot be ignored despite the possibility of a pullback. The asset’s price action suggests that a 6% rally above its ATH is within reach if market conditions remain favorable. Continued strength in the broader crypto market could amplify buying pressure, helping SOL break its ATH and enter uncharted territory.
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For now, all eyes are on Solana’s ability to navigate this supply zone. A successful breakout could pave the way for new highs, while a pullback to $220 could provide an ideal launching pad for the next leg of its rally. Either way, SOL’s trajectory highlights its growing prominence in the market as traders anticipate its next big move.
Price Action Details
Solana is trading at $242, holding steady after a few days of consolidation below the $250 mark. This level represents critical resistance as SOL approaches its all-time high (ATH). Despite this pause, the price action remains strong, supported by the broader bullish sentiment across the crypto market.
However, SOL’s ability to break above $250 will be a key factor in determining its next move. A successful push beyond this level could set the stage for a retest of its ATH and potentially a rally towards price discovery. On the contrary, if SOL fails to overcome this resistance, a retreat towards areas of lower demand is likely.
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In this scenario, the next logical support level to watch would be around $222, where buyers could step in to reignite the momentum. If the pullback continues further, SOL could re-reach the previous yearly highs of $210, a critical level that proved significant for the price action.
Featured image of Dall-E, TradingView chart
