Solana (SOL) is looking primed for a big move. Recent price action shows a tightening range, a classic “volatility squeeze” that often precedes a significant price jump. Traders are on the edge, waiting to see which way it breaks.
Building Momentum
On shorter timeframes, Solana’s price action is creating a clear breakout structure. Highs and lows are getting closer together, hinting at building pressure. After a brief dip below $142, strong buying pushed SOL back above $150, showing resilience. This suggests the market is absorbing selling pressure and could be ready for more gains.
Bearish Signals? Not So Fast.
While some analysts see a bearish descending triangle pattern on the 1-hour chart (lower highs, flat support around $145), the recent bounce off this support suggests a potential temporary reversal. The key resistance level sits around $155; a break above this would signal a significant shift. Technical indicators also point to oversold conditions, meaning the selling pressure might be fading.
Bullish Patterns Emerge
Interestingly, other analysts see bullish signals. A “Shark harmonic pattern” on the 4-hour chart, aligning with Fibonacci extension levels around $147, suggests a potential reversal zone. If this pattern plays out, targets could reach $180-$190.
The Wedge Breakout
Another perspective points to a broadening wedge pattern on the 4-hour chart. These wedges, with their diverging trendlines, often precede significant price swings. As SOL consolidates beneath the wedge’s resistance, building volume could trigger a bullish surge towards targets at $215, $228, $243, and even $265.
The Bottom Line
Overall, the signs point to a potential Solana breakout. While bearish patterns exist, bullish signals and technical indicators suggest a strong possibility of a significant upward move. The coming days will be crucial in confirming the direction.
