Solana (SOL) is approaching a critical level as its price undergoes a period of compression, according to an analysis by analyst Crypto Yapper. His tweet and chart highlight a key support level that could determine the future direction of SOL’s price.
While a breakout seems likely, there are important factors investors need to consider before anticipating a surge.
SOL’s Price Compression and Resistance
Crypto Yapper’s analysis points out that Solana is facing a descending resistance trendline that has consistently hindered the coin’s price movement throughout 2024. This trendline acts as a barrier, preventing SOL from gaining upward momentum.
$SOL Price Compression !The price of #SOL is getting squeezed into an apex We will see a huge break out soon, but first we are going back downThe horizontal support at $128 is the level to hold for #Solana pic.twitter.com/kuKnKj81Ow
— Crypto Yapper (@CryptoYapper) October 3, 2024
The repeated inability to break through this resistance suggests that a price breakout may be approaching, but the direction remains uncertain. The current price of Solana is being squeezed between this descending resistance and a horizontal support level, forming a price compression pattern.
Price compression often leads to substantial movement, either upwards or downwards, as the price reaches the apex of the pattern.
Horizontal Support at $128: Key Level to Watch
The horizontal support at $128 is crucial for Solana’s price stability, as highlighted by Crypto Yapper in his tweet. This level has held strong in previous dips, serving as a zone where buying pressure emerged.
However, should the price fall below this support, it could lead to further declines. The support level is critical as it signals a point of potential reversal for SOL.
If Solana manages to hold above $128, the price may bounce, triggering the breakout investors are eagerly anticipating. Conversely, a failure to hold could result in a downward movement before any upward trend materializes.
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Read also: Expert Warns of Further Bitcoin (BTC) Price Dip: Here’s Why
Price Squeeze Towards Apex and Near-Term Outlook
Solana is currently in a phase where the price is being squeezed toward an apex. This price squeeze typically signals an imminent breakout. However, Crypto Yapper predicts that the price is likely to dip toward the $128 support level before a breakout occurs.
This prediction aligns with broader market patterns, where cryptocurrencies often retest support levels before making a major move. The analyst suggests that once Solana tests this support level, investors should prepare for a breakout.
If SOL breaks above the descending resistance, a surge could follow. On the other hand, a drop below $128 may indicate further downside for the crypto.
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The post Solana (SOL) Price Eyes Potential Surge, But There’s a Catch appeared first on CaptainAltcoin.
