Solana is currently trading above a significant demand level at around $157, indicating a potential bounce following a recent pullback. Despite market volatility, this level has remained stable, focusing attention on Solana's ability to regain bullish momentum. With the U.S. election and an impending Federal Reserve interest rate decision, market volatility is expected to increase.
Carl Runefelt, a renowned analyst, underscores the necessity for Solana to break above a crucial resistance level to resume a strong uptrend. The resistance, approximately around $164, has restricted Solana's price movement. Breaking through could foster optimism among SOL investors and signal a potential rally.
Solana is attempting to maintain its position above a vital support level that previously acted as resistance, underscoring its resilient performance in this cycle. Runefelt's analysis on a 2-hour SOL chart emphasizes the importance of surmounting this descending resistance to trigger renewed bullish activity.
The unfolding macro events, particularly the U.S. election and Federal Reserve's decisions, heighten the risk of price swings and potential market manipulation. Solana breaking resistance could significantly impact its trajectory, with an opportunity to harness bullish sentiment if it secures support above $164.
Currently trading at $161 from a recent low of $155, Solana has established a strong support base. For continued upward momentum, surpassing the $165 resistance is pivotal. Failure to achieve this could trigger a downturn, possibly targeting the demand zone around $150, aligned with the 200-day moving average.
The consolidation phase places Solana in a critical position, with its path primarily dependent on overcoming the $165 resistance level. Traders closely monitor this setup, with $150 as a fallback in case the bullish scenario does not unfold.
