Solana — Testing Major Support Again
Solana has once again revisited its significant support level around $130, marking the 7th test of this area since March. This level has held each time, indicating intense buying pressure at these levels. However, the next few days will determine whether SOL can gather enough momentum to push higher.
Key Levels to Watch:
- $130 support: This level has proven strong, but repeated tests can weaken support zones. If SOL bounces here, we could see another attempt to test higher resistance levels.
- EMA200 at $139: Solana must break above this moving average to gain short-term bullish momentum. It was rejected at this level previously, so it will be essential to see if the bulls have enough strength to push through.
- Descending channel: SOL is still trading within a descending channel, and to turn fully bullish, a break above $174 is essential. This would not only signify a channel breakout but could also trigger a significant bullish run.
The Bullish Case:
If SOL breaks out of this descending channel, the first target would be the previous high at $200. A move past $174 would likely spark a rally, but there’s still a lot of work to be done to get there.
The Caution:
While the $130 support is strong, there’s a risk that Solana could continue bouncing within the channel, meaning we could see more sideways action or even another dip. Given this uncertainty, I would hold off on entering a trade at this level. A more explicit entry would come once we see a decisive move, either breaking above the $174 level or confirming further support around $130.
