Solana Enters Critical Phase — Potential for Major Price Movement Ahead

As Solana approaches a pivotal moment, price action is tightening within a narrowing range, suggesting that a significant price movement could be imminent. With decreasing volatility and well-defined levels, the cryptocurrency market seems primed for either a breakout or breakdown in the near term.

Key Takeaways

Solana is in a compression phase, indicating potential volatility ahead.
Key resistance is observed at $85, while $75.5 to $78 is critical support.
A breakout above $85 could signal bullish momentum, while a drop below $75.5 may increase selling pressure.
An ascending structure is forming, hinting at buyers' attempts to gain strength despite prevailing bearish conditions.

Solana

Imminent Volatility Expected from Compression Phase

Solana has been facing considerable pressure and is working to stabilize near a vital support zone. According to MakroVision Research, the asset's price is starting to consolidate into a narrower range even as it continues trading under important descending trendlines that indicate a bearish trend.

On the upside, the $85 mark represents the first significant hurdle, combining horizontal resistance with the existing downtrend's weight. A jump above $98, which would break the latest lower high, could signal a stronger momentum shift and enhance the outlook for Solana. Furthermore, a break beyond $117 would considerably reinforce the price structure, indicating a robust recovery phase.

Solana
Source: Chart from MakroVision Research on X

Conversely, the $75.5 to $78 range remains a crucial support zone. Early signs suggest buyers are trying to protect this level, but any significant breakdown below could reinforce bearish sentiment and trigger more selling pressure.

The price structure indicates Solana is trading within a tightening range just above support while a minor upward pattern is forming. However, the broader trend continues to face pressure from descending resistance lines, suggesting that a comprehensive reversal has yet to occur. A breakout from this compression is expected to determine the next major price movement.

Emerging Ascending Formation While Range Constrains

In examining the current chart, analysts note that Solana continues to operate within a tight range just above its critical support zone. Within this period of consolidation, a smaller ascending structure is gradually forming, indicating that buyers are making efforts to gather momentum and establish a base for a potential upward movement.

Despite these indications, upward progress remains limited since price action continues to be constrained by major red downtrend lines. These descending resistance levels are currently dominant, hindering any consistent upward movement. Until these barriers are breached, any rise in price may be interpreted as merely a temporary reprieve instead of a confirmed trend reversal.

A powerful and decisive breakout above the $85 level would mark the first significant bullish indicator, possibly opening the door for an extended move towards $95 or higher. On the other hand, if the support zone fails, selling pressure could surge quickly, heightening the chances of a renewed downward trend as the overarching bearish conditions reassert themselves.

Solana
SOL trading at $83 on the 1D chart | Source: SOLUSDT on Tradingview.com