Solana (SOL) has been experiencing significant volatility and volatile price action since Monday, testing a key supply level that will determine its direction in the coming weeks. As the market continues to rise, most analysts and investors expect a potential upside for SOL, especially as the resistance level at $160 appears to be weakening under recent upward pressure.

The cryptocurrency community is closely watching this development as breaking this key resistance could lead to significant gains for the altcoin.

Leading analyst and investor Carl Runefelt recently shared a technical analysis that paints a bullish picture for Solana’s price action over the next few hours. According to Runefelt, fading resistance could pave the way for a breakout, and bullish momentum will lead SOL to higher targets.

While the market remains volatile, confidence in Solana’s ability to meet current challenges is growing. If supply levels are exceeded, it could signal the beginning of a modern uptrend, making SOL a focal point for traders looking for opportunities in the current market landscape.

The coming days will be crucial in shaping Solana’s trajectory, as investors will closely monitor whether the price will confirm the predicted boost.

Solana A bullish pattern signals momentum

The entire cryptocurrency market is experiencing increased volatility, and Solana has not been immune to this, with its price ranging between $148 and $160 as of Monday. This consolidation phase has left investors eager to see where the altcoin will go in the coming days.

Most recently Runefelt shared technical analysis on Xemphasizing that Solana is breaking out of a one-hour falling wedge pattern, which is a bullish signal.

The immediate upside target is $159.6, a level that – if broken and held – could lead to a massive rally towards $185 – which will be a significant move that will take Solana near yearly highs.

Despite this bullish setup, the market remains cautious and there is still a risk that Solana will fail to regain key levels. If the price struggles to break and stay above the resistance at $159.6, the current consolidation could continue or even lead to a potential pullback, with target targets near $148. Such a scenario would disappoint bulls expecting growth and could temporarily worsen market sentiment.

A confirmed breakout and continued momentum could signal the beginning of a modern phase of growth, attracting both retail and institutional investors.

However, the risk of a failed breakout is accumulating, keeping market participants in uncertainty. Traders are watching closely as Solana’s next move will likely set the tone for its performance over the next few weeks. If it breaks through resistance, SOL could be on track to make complex yearly highs.

Technical levels to watch

Solana is currently trading at $154 after finding support at the 200-day moving average (MA) at $150.7, a critical level signaling long-term strength if it holds as a demand zone. This MA has historically acted as a key indicator of market trends, and maintaining above it would strengthen the bullish outlook for SOL.

For bulls to maintain momentum, the price needs to hold above the 200-day MA and aim to break the key resistance at $160, a level that has been limiting Solana’s upward move since early August. A break of this resistance would signal a potential price boost, opening the door to further gains in the coming weeks.

However, if SOL fails to hold above the 200-day MA and is unable to overcome the resistance at $160, there is a risk of a corrective move. A drop below the 1D 200 MA could lead to a decline towards $140, a level that will play a key role in determining the next phase of Solana’s price action.

Both bulls and bears are keeping a close eye on these key levels as the next move could set the tone for Solana’s stock in the near future.

Featured image from Dall-E, chart from TradingView