SOLANA READY TO BREAK OUT?
Solana (SOL) is trading at $217, consolidating just below the 50-day SMA (~$219) after a break and retest of descending resistance. This breakout indicates potential bullish continuation, but the lack of significant volume suggests that buyer conviction is still weak. Volume confirmation will be key to validating any sustained upward move.
The $259.50 level, representing the previous cycle’s all-time high that was briefly broken in November, remains the major resistance to watch. A clean break above this level with increased volume could open the door to new highs, signaling stronger bullish momentum.
On the downside, the $203 level serves as critical support, as it aligns with the retest of the descending resistance turned support. Maintaining this level is essential to preserve the bullish structure. If the price falls below $203, it could lead to a deeper correction, potentially testing the 200-day SMA near $171.
In summary, while Solana's technical setup leans bullish, confirmation through volume and a reclaim of the 50-day SMA will be critical for a move toward the $259.50 resistance. Until then, the market remains in a cautious consolidation phase.
