- SOL is testing critical support levels, hinting at a potential reversal.
- A break above resistance could ignite another strong bullish move.
- Market structure suggests accumulation at lower levels, favoring an upside breakout.
Signs of Strength at Key Support
After a sharp correction from its peak, SOL has found stability near the $112-$125 range. This level has acted as a strong support in the past, and buyers are stepping in again, preventing further downside. The latest bounce suggests that accumulation is taking place, as evidenced by the formation of higher lows within this region. If this trend continues, we could see renewed bullish momentum, pushing SOL toward key resistance zones.
Despite the previous downturn, SOL has managed to stay above its long-term trendline, which reinforces the case for a potential recovery. If bulls manage to hold this support, the next move could be a push toward $150, where the last major rejection occurred. However, if SOL fails to hold above this zone, a retest of lower levels could follow before a clearer trend emerges.
Resistance Holding, But for How Long?
SOL’s primary challenge lies in breaking through the $136-$150 resistance area, which has repeatedly rejected price surges. Historically, this level has been a critical battleground for buyers and sellers, with recent price action showing hesitation near these levels. If SOL manages a clean breakout above this zone, it could open the doors for a swift rally toward $175 and beyond.
However, failure to break resistance could result in another pullback, leading to a period of consolidation before any meaningful move. A key factor to watch is whether SOL continues forming higher lows, which would indicate that bullish pressure is building up over time. A confirmed breakout could set the stage for a broader trend shift back to the upside.
Upside Targets Looking More Promising
If SOL clears the $150 resistance, the next major targets lie at $175 and $200, both of which align with previous swing highs. These levels represent psychological barriers that have historically triggered strong price reactions. A decisive move above them would strengthen bullish sentiment and potentially lead to a test of the previous highs above $250.
For now, the market structure favors an eventual breakout, but patience is required. If the bulls fail to hold key support, a brief dip could occur before any serious upside move. As long as SOL maintains its pattern of higher lows, the bias remains in favor of the buyers.
