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Solana (SOL) is currently trading near a vital demand zone at $165, following a retracement from its recent peak of $183. This price level is crucial for SOL, as a failure to hold it could lead to a more significant correction and potential further downside risk for the altcoin.
Solana’s Potential for a Brief Correction
Prominent analyst Carl Runefelt has shared insights through technical analysis, suggesting that Solana might undergo a short-term correction before possibly rallying to retest its previous local highs. Runefelt’s analysis points to signs of renewed strength in SOL, indicating that the altcoin is gearing up for a move that could challenge its recent highs within the coming days. This bullish outlook heavily relies on Solana maintaining its support around the $165 level, which could serve as a catalyst for further upward momentum.
As the broader cryptocurrency market keenly observes Bitcoin’s pursuit of a new all-time high, Solana investors are preparing for potential volatility. In this uncertain environment, Solana remains a key focus for those investors who perceive an opportunity should the support hold firm.
Solana Holding Key Demand Level
Solana (SOL) has positioned itself as one of the stronger-performing altcoins in this market cycle, garnering substantial attention as it tests a crucial demand level that could propel it toward new highs. Renowned analyst and investor Carl Runefelt recently shared technical analysis, suggesting that SOL might briefly dip to around $160 before making a push to retest its recent high at $180.
According to Runefelt, this $160 level represents a pivotal support zone for Solana. Maintaining a position above it is crucial to sustain the altcoin’s bullish momentum and confirm its ongoing uptrend. This analysis underscores the importance of this support level in driving Solana’s potential for gains, proposing that it could act as a springboard for a significant rally.
If SOL successfully remains above the $160 mark, a surge to test local highs would not only bolster investor confidence but also pave the way for Solana to explore new territories, given favorable broader market conditions. The upcoming weeks could be decisive for SOL as the market braces for increased volatility with the impending US election and Bitcoin approaching its all-time high.
SOL Technical Levels To Watch
Solana is currently trading at $166 after a slight rebound from the $163 level, maintaining a strong position above the key $160 support zone. This level has proven to be a critical threshold for SOL, as sustaining a hold here could lay the groundwork for a rally towards higher resistance levels.
If buyers effectively defend the $160 level, it may provide the basis for an ascent to $183 and potentially beyond, with higher supply zones likely to be tested. Analysts are closely monitoring this level, as it could either reinforce SOL’s bullish structure or indicate a need for further consolidation.
A breakdown below $160, however, would likely lead to a deeper correction, prompting traders to adjust their expectations as Solana seeks lower support levels. The next few days will be vital as the market assesses SOL’s strength at $160 and prepares for potential moves towards new highs.
