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Solana (SOL) has reclaimed crucial levels amid its price rally, recording its highest range in months. However, as the market’s recovery takes a pause, the cryptocurrency has hit a key level that could propel or delay its surge to new highs.
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Solana Rally Faces Key Barrier
Solana’s price has significantly surged over the past several weeks, recovering from April’s pullback and breaking out of its downtrend. After its January all-time high (ATH), SOL retraced up to 63%, hitting a 14-month low of $95 last month.
However, Solana climbed above some crucial ranges during the late April market recovery, reclaiming the $140 resistance as support for the first time in two months. Since then, the cryptocurrency rallied nearly 30% to the $180 mark, recording a three-month high of $183 last week before retracing to the $170 support.
Crypto Trader Mercury noted that Solana reached a “very HTF infection point,” which could send the cryptocurrency’s price to new ATHs again if reclaimed. However, the market slowdown has stalled SOL’s rally, with its price falling to the $165-$170 range over the weekend.
After its recent performance, the trader added that SOL was rejected from the key inflection point “just enough to allow for a retest of the same trend that got us here in the first place.”
Based on this, he considers that reclaiming the $180 mark and eventual breakout to news ATHs is on the horizon, “as long as that 4H 200MAs trend holds.”
Meanwhile, analyst Cas Abbé pointed out that Solana’s multi-year trend remains intact despite the recent pullbacks. As he explained, the cryptocurrency is over 50% up from its multi-year ascending trendline retest, seemingly marking the bottom for Solana.
The analyst considers that SOL January ATH could not be the top, and another record-breaking rally could come this year. Similarly, trader Coinvo highlighted the ascending trendline, “If SOL continues to hold this trendline, it’s going much higher!”
SOL eyes $200 Breakout
Over the weekend, analyst Rekt Capital asserted that Solana has broken into its Post-Halving Re-Accumulation Range on the monthly timeframe, successfully retesting the $120-$135 range as support over the past couple of months.
This key higher timeframe retest propelled the cryptocurrency to revisit the $165-$175 range’s high. However, he explained that Solana must break above the upper boundary to confirm a breakout and continue ascending, which it failed to do during last week’s close.
SOL also must break and retest the upper boundary as a new support with a Weekly Close above this mark to exit the key range. Additionally, the analyst pointed out that previous performance suggests a price breakout could happen.
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According to its Q4 2024 price action, if Solana builds a base around the Range high’s resistance, there’s a high chance for the price to rally. The analyst added that a successful breakout from this zone could send SOL’s price to the $200-$210 mark.
“SOL simply needs stability here at the Range High resistance, as that would telegraph that this is an area that is becoming support,” Rekt capital concluded.
As of this writing, Solana trades at $165, a 3.1% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
