Sol has broken through multiple resistance levels over the past few weeks, hitting new highs this week, and buying has cooled. Prices are taking a break and are currently trading weak on the day, entering a brief consolidation phase.
Sol has been on a tear in the past week’s rally, along with other top altcoins, breaking new highs above $225. However, as the fifth-largest cryptocurrency by market cap, there are bigger moves ahead, but prices are currently in a consolidation phase.
This phase temporarily halts buying as it builds momentum for the next major move. During this period, the price has declined due to the recent market crash but still remains above the $200 level.
From a technical perspective, Sol is more likely to break higher soon. But as things stand, daily buying appears to be on the lower side. An increase in volume should get the bulls back on track.
Losing the key holding level could result in a minor pullback, offering discounts to short-term buyers. Such a move could create new support above $180 before a rebound.
It is worth noting that the new higher higher low pattern that started from the $120 level still looks very much intact on the daily chart. When the market finds support again, we can expect tremendous bullish momentum in the coming months.
Key SOL levels to watch
Source: Tradingview
In anticipation, Sol must reclaim the current high of $225.2 before moving above $250 and $275 in a short time. The key target level to watch for during this buying phase is $300.
If the price breaks down, Sol might revisit the support at $194. If the price breaks below this level, the lower support on the decline will be $183.4 and soon $169.
Key Resistance Levels: $225.2, $250, $300
Key Support Levels: $194, $183.4, $169
Spot price: $207.7
Trend: Bullish
Volatility: High
