Key Takeaways
- Despite the price increase, SOL remains within a descending channel on the daily chart, indicating a bearish pattern.
- The AO is in negative territory, and SOL is trading below the 20-day EMA, suggesting weak bullish momentum.
- The 4-hour chart shows a bearish outlook, indicating a looming crossover of the 26 EMA below the 12 EMA
Solana (SOL) spent most of last week stuck below the $150 mark, but that changed today as it finally pushed back above the key psychological level.
Still, the rally might not have much fuel behind it. Demand for SOL remains relatively weak, and broader market sentiment isn’t offering much support.
Here’s what to watch next and the key price levels that could shape where Solana goes from here.
SOL Remains on the Edge
Solana may have reclaimed the $150 mark, but technically, it’s still stuck in a bearish setup.
On the daily chart, SOL continues to trade within a descending channel and is now hovering near the upper boundary.
While that might seem promising, it doesn’t mean a breakout is guaranteed, at least not yet.
For SOL to break above this pattern, we’d need to see a pickup in trading volume and buying pressure, neither of which has materialized so far.
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Adding to the caution, the Awesome Oscillator (AO) remains in negative territory, signaling that bearish momentum is still in play.
If this trend holds, SOL could struggle to push past resistance at $179.95. In fact, the more likely scenario—at least for now—is a pullback to the support zone near $138.75.
Besides this, SOL is trading below the 20-day Exponential Moving Average (EMA). Trading below this level means the current support is weak, and a drawdown below $140 could be in line.
SOL Price Prediction: Stalemate Possible
Analysis of the 4-hour chart also seems to present a similar outlook. For instance, the Moving Average Convergence Divergence (MACD) has dropped into the negative region.
At the same time, the Exponential Moving Average (EMA) is forming a bearish crossover. This crossover happens when the longer EMA crosses above the shorter one.
In this case, the 26 (EMA) is on the verge of crossing below the 12 EMA (blue). Should this remain the same, the Solana’s price could fail to breach $152.20.
In addition, the 4-hour chart shows that SOL’s price has formed a rising wedge, which typically signals a bearish reversal.
It forms when the price of an asset consolidates between two converging trendlines that slope upward. The upper trendline (resistance) and lower trendline (support) get closer together as the price makes higher highs and higher lows, but with decreasing momentum.
Due to this position, SOL is likely to experience a decline to $136. This could be worse if selling pressure increases, as the value might decline to $125.99.
However, if buying pressure intensifies, this forecast might not happen. In that scenario, the altcoin’s market value might jump to $200.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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