Solana (SOL) has been experiencing significant volatility, marked by choppy price action, as it tests a crucial supply level. The weakening $160 resistance level has investors anticipating a potential upward surge for SOL. A successful breakthrough could lead to substantial gains for the altcoin, attracting trader interest.
Top analyst Carl Runefelt's technical analysis indicates a bullish momentum could propel SOL to higher targets. Solana's ability to breach the resistance is critical, as confidence grows regarding its capability to overcome current challenges and set off a new upward trend.
Despite heightened volatility across the market, Solana's current consolidation phase between $148 and $160 has traders on edge about its next direction. Runefelt notes breaking out of a 1-hour Falling Wedge pattern could result in a massive surge, positioning Solana near its yearly highs of $185.
However, if SOL struggles to hold above the $159.6 resistance or breaks key support levels, it could see a pullback, potentially disappointing bulls and dampening market sentiment. Holding above the 200-day moving average at $150.7 is crucial for maintaining bullish sentiment.
Sustaining momentum and breaking the $160 resistance could attract both retail and institutional investors, signaling a new bullish phase. The risk of a failed breakout keeps market participants on edge, with Solana's next move likely setting the tone for its performance over upcoming weeks.
