Solana (SOL) is at a critical juncture as it tests demand at a price level that previously acted as key resistance. Since late November, the price of SOL has been retreating, which has dampened the hype surrounding the cryptocurrency. The prolonged decline has left investors unsure about Solana’s next move, with many wondering if it can regain its bullish momentum.
Top analyst Jelle recently shared a technical analysis on X, shedding light on Solana’s current setup. According to Jelle, Solana has formed a falling wedge pattern (a classic bullish formation) at what was once a critical resistance level. The price has confirmed this level as support, providing a potential basis for a significant rally in the near term.
If the support holds, it could reignite the bullish sentiment and position. Solana, for another good streak. However, failure to maintain this level may indicate a further decline, which could erode confidence in its long-term trajectory. As Solana goes through this crucial moment, all eyes are on whether he can regain his former glory and build on the momentum.
Solana finds fuel to take off
Solana has seen a 23% retracement from its local high of $264, set on November 22. Despite this drop, the cryptocurrency remains firm above the $210 level, a crucial support zone that has analysts optimistic about a possible rally to a new all-time high. maximums. The resistance shown by SOL at this level suggests that bullish momentum may be building as the price consolidates.
Top analyst Jelle recently shared his thoughts on Xhighlighting a bullish technical setup for Solana. According to Jelle, SOL has formed a falling wedge pattern, a structure that often signals an upcoming breakout. Importantly, the wedge aligns with a key resistance level that has now been confirmed as support, strengthening the case for further bullish movement.
Jelle also notes that Solana formed its first higher low during this pullback, a potential sign that the asset is ready to resume its uptrend. He believes Solana could rediscover prices before Christmas, predicting a target of $300 in the coming days.
However, risks remain, especially if the consolidation phase lasts longer than expected. If SOL fails to break out decisively, it could struggle to regain the upward momentum needed to challenge new highs. For now, Solana’s ability to stay above $210 will be critical in determining its next move.
Reactive demand test
Solana is at a critical inflection point, trading at $216 and holding firm above the $210 mark, a level that once acted as significant resistance. This key support level now plays a critical role in determining whether SOL can initiate a historic rally. The current price development reflects growing optimism among investors, with many anticipating that holding above $210 for just a few days could trigger a strong recovery.
Analysts suggest that if SOL maintains its position above this critical level, a quick move towards $250 will likely occur. Such a recovery would position Solana to regain its bullish momentum and potentially challenge its all-time high (ATH). While this scenario may seem ambitious, SOL has previously demonstrated its ability to make rapid upward moves under similar conditions.
A strong confirmation of support at the $210 level could attract fresh buying interest, creating the foundation for the next leg of its rally. With momentum on the horizon, the next few days will be critical in determining whether Solana can make history and target unprecedented price levels.
Featured image of Dall-E, TradingView chart
Fountain: NewsBTC.com
