Solana (SOL) has been navigating extreme volatility as the broader market shifted from bearish to bullish within hours yesterday. After experiencing a sharp 25% decline from its all-time high (ATH) in less than two weeks, SOL tested a crucial demand level and is now making an attempt to recover lost ground.
Investors remain divided on whether Solana has bottomed or if another pullback is on the horizon. However, early signs suggest buyers are stepping in, defending key technical levels. Top analyst Jelle shared a technical analysis on X, noting that Solana has successfully retested the 25-day EMA and RSI midlevel, both of which have historically acted as strong support during bullish trends. Following this retest, SOL bounced straight into key resistance, signaling a potential reversal if bulls maintain momentum.
For Solana to confirm its recovery, it must break above resistance and sustain its move higher. If successful, SOL could resume its bullish trend, potentially reclaiming recent highs. However, failure to break key levels could lead to further consolidation or even another leg down. The coming days will be crucial in determining Solana’s next major move.
Solana Surges 8% As Market Reacts To Fed Meeting
Solana has bounced back strongly, surging 8% from local lows on Wednesday as the entire market reacted positively to the Federal Reserve meeting. Investors and analysts are now shifting their focus to a bullish outlook, anticipating a strong performance for crypto throughout the year. With sentiment improving, SOL is once again positioning itself as a market leader, aiming to reclaim key price levels and push toward new highs.
Top analyst Jelle shared a technical analysis on X, highlighting Solana’s recent retest of the 25-day EMA and RSI midlevel, both of which have historically acted as crucial support zones. After confirming these levels, SOL bounced straight into key resistance, signaling a potential breakout if momentum continues.
Jelle emphasized that for Solana to “look great again,” it must reclaim the $240 level. However, he also cautioned that “resistance is resistance” until a clear breakout occurs.
As the broader market tries to push higher, Solana is leading the way with strong technical formations and renewed bullish momentum. If bulls successfully push past resistance, SOL could retest its all-time highs and enter price discovery once again. The coming days will be pivotal in determining whether Solana confirms its next major uptrend.
Solana Price Holds Strong at $240
Solana (SOL) is currently trading at $240 after successfully testing the $220 level as support. The price appears ready to bounce, but key resistance levels must be reclaimed to confirm a short-term trend reversal. For bulls to maintain momentum, SOL must break above $240 and $260, two critical resistance zones that have capped upward movement in recent days. If Solana clears these levels with strength, a surge above all-time highs (ATH) will be imminent, setting the stage for price discovery.
On the bearish side, losing the $220 mark would signal weakness, potentially leading to further downside and deeper consolidation. The broader market remains volatile, and SOL must hold above key support levels to sustain its bullish trajectory.
For now, Solana remains well-positioned to push higher, but investors will be watching closely to see if it can reclaim resistance and confirm a breakout. The next few days will be crucial in determining whether SOL resumes its uptrend or faces another test of demand levels.
Featured image from Dall-E, chart from TradingView
Source: NewsBTC