- Solana trades near key EMAs as traders eye a breakout from a tightening triangle that could spark a major directional move.
- Despite recent pullbacks, Solana shows long-term strength with bullish signals building above curved support and rising momentum.
- Mixed technical signals and rising DeFi adoption suggest Solana may be gearing up for a breakout if it reclaims the $170 level.
As the price action tightens close to support levels, Solana (SOL) is displaying signs. Currently trading at $159.90, the cryptocurrency is undergoing a solid retreat following a burst to $168. It is now just below the 200-day EMA, which many traders believe is necessary for bullish continuation, as a result of this decline. The price may soon pick up steam if it stays above this level. If current support fails, a decline to the 20-day EMA at $153 is still possible.
Source: Lark Davis
Besides, the narrowing range between $149 and $163 has formed a converging triangle. This pattern hints at a possible breakout ahead. A break above resistance could signal a fresh leg up, while failure may invite further downside pressure.
Long-Term Trends Show Both Strength and Volatility
Solana has experienced a lot since 2022. When the market was down, the token fell from $100 to $8. The FTX failure, which coincided with this fall, rocked trust in the Solana ecosystem. In 2023, SOL made a spectacular resurgence, though, and by early 2024, it had eclipsed $200. That 2,400% increase was one of the largest cryptocurrency comebacks in recent memory.
Source: Ali
However, this bullish wave faded fast. SOL retraced to current levels after peaking, now stabilizing near $161. As of July 11, the token posted a 6.11% daily gain. Moreover, the weekly chart shows the price bouncing from long-term curved support, a sign bulls might still be in control.
Key Indicators Flash Mixed Signals
Technical indicators suggest indecision. The MACD shows a slight recovery in momentum, but the signal line still leads. Meanwhile, volume levels remain inconsistent, adding to the uncertainty. Still, if Solana closes above $170 this week, bullish sentiment could explode. Analysts believe such a move may open the path toward $2,000 in the long run.
Additionally, Solana’s fundamentals remain solid. Developer activity is rising, and DeFi adoption on the network keeps growing. Hence, the current consolidation might be the calm before the next big move.
