Solana (SOL) is nearing a pivotal point that could determine its short-term direction. According to Whale Factor, SOL is trading in a descending wedge on the 4-hour chart, and the trade is almost fully exhausted.
The descending wedge follows a larger downtrend and may result in a reversal if the price breaks above the upper line at $82. This “critical point” is being closely watched by traders because volatility tends to increase as wedges narrow to a point.
Source: X
Current actions indicate that the bears are losing strength. The lower highs are being formed along the resistance line, and the higher lows form the rising support line. The recent bounce from the lower line indicates that there is more buying at higher levels.
If a strong breakout occurs, SOL may reach the $90-$100 level, which corresponds to the measured move from the widest part of the wedge. However, if support at $78 is maintained, the price may remain above it and move towards $68.
Also Read: Solana Futures Flip Bearish as Revenue Hits 4-Month Low
Medium-Term Downtrend Remains Intact
Analysis on TradingView indicates that Solana’s mid-term outlook is still bearish. Looking at the 2-day chart, there is a visible correction after reaching the $275-$280 mark.
The price has been forming lower highs and lower lows, which means that the momentum is no longer up but down. Currently, the price has broken below the $100-$110 level, which is moving towards the mid-$80s.
The technical indicators are bearish. The price is trading close to the lower Bollinger Band of $59-$60, indicating constant selling pressure. The middle Bollinger Band of $100 has become a dynamic resistance level, and hence, relief rallies will be limited unless there is heavy buying.
Source: TradingView
The momentum indicators are also bearish, with the RSI value ranging between 30 and 40 and making lower highs, and the MACD remaining below the signal line and zero.
Solana Critical Levels to Watch
The key levels indicate the possible actions of Solana. If it is positive, the first level to break through is getting back above $100, but the stronger level is $140-$150. Breaking through these levels would change market sentiment to be positive.
If it is negative, the first level to break through is $75-$70, and then the lower area of Bollinger, which is around $60. If it remains below $60, further declines to $50-$47 are possible.
Also Read: Solana (SOL) Accumulation Rises Despite Shorts and Social Activity Decline
