- Solana (SOL) has broken out of a well-established Channel Down setup and may experience a potential short-term bullish reversal.
- Despite the breakout, SOL’s overall direction is bearish for all major time frames, and so this is a risky trading setup.
- SOL is currently priced at $147.93 with a 24-hour trading volume of $2.73 billion and is seeing a 25.34% decline in volume.
- Key technical levels include support at $140 and $125, and $160 and $167 are levels of resistance with a longer-term obstacle at $180.
Solana (SOL) is gaining traction throughout the whole crypto community and experiencing a surge in its price with the overall market. The SOL price over the last 24 hours is moving slightly downward, but over the last week its price is up by 0.71%.
At the time of writing, SOL is trading at $147.93 with a 24-hour trading volume of $2.73 billion, down by 25.34% over the last 24 hours, and a market capitalization of $79.14 billion.
Also Read: Solana Price Eyes $300 as Derivatives Metrics Turn Bullish
Solana Eyes Breakout: Can SOL Hit $180 Soon?
Moreover, the crypto analyst highlighted that Solana (SOL) is showing signs of a potential breakout, moving decisively within its long-standing Channel Down formation. This technical breakdown pattern, after restraining SOL’s price action for several weeks, was violated on Friday, a signal for a reversal of short-term sentiment in the market.
There is breakout bullish momentum and short-term targets somewhere between $160 and $167, a potential upside of approximately 10%. Rising volume on the move provides strength to the trend, but traders are advised to remain vigilant because the bigger picture remains uncertain.
Despite this bullish setup, Solana’s overall trend remains firmly bearish on all major timeframes. Short-, medium-, and long-term views remain on the downside, so this move is not yet a confirmed reversal but a counter-trend trade.
Although momentum traders will look to buy here, the risk is greater. Any potential rally must prove itself through sustained momentum and successful retests of key support levels. For effective risk management, enter with a stop loss at around $136, just below the breakout zone, to manage a false breakout.
Major technical levels are also central to Solana’s short-term guidance on prices. Immediate support is at $140, but a more important area of support is at $125 and would be invoked if bearish momentum were to reassert itself. At the higher end, $160 is the first major barrier for bulls before $167 is taken on target.
If SOL’s momentum accelerates further, it would have to test the $180 level, a longer-term level of resistance that would denote a bigger change of direction in trend.
Also Read: Massive Solana Whale Transfer Unfolds: Is a SOL Surge Incoming?