Solana (SOL) is navigating a tumultuous time after facing a massive 33% correction from its all-time high of $264, reached at the end of November. Despite the sharp withdrawal, Solana shows resilience, giving investors a promising long-term view.
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Renowned crypto analyst Carl Runefelt recently shared his thoughts on X, highlighting a strong technical position for SOL. According to Runefelt, Solana has successfully reconfirmed a large triangle pattern on the weekly chart. This critical retest indicates that Solana's price action is still intact and could be the starting point for a major rally in the near future.
While broader market corrections have weighed on short-term sentiment, Solana's ability to maintain structural integrity amid the downturn provides bulls with an optimistic outlook. If SOL can maintain its current levels and building momentum, it could soon be regaining lost ground and charting a path to new heights. Analysts will be closely watching how Solana reacts to this crucial technical indicator, as it could define the direction of altcoins in the coming weeks.
Solana maintains a Bullish Structure
Despite a 30% return from its all-time high, Solana (SOL) maintains a supportive structure on higher time frames, indicating long-term strength. This resurgence has analysts and investors optimistic about Solana's ability to outperform once the market recovers. Known for its strong fundamentals and rapid adoption, SOL remains popular among traders anticipating the next altcoin rally.
Lead crypto analyst Carl Runefelt recently shared a detailed technical analysis of it X, marks an exciting pattern for Solana. Runefelt revealed that SOL has successfully reconfirmed the formation of a large triangle on the weekly time frame, an important milestone for its bullish trajectory.
According to his analysis, if Solana remains firmly above the $180 mark, the cryptocurrency could rise to $330 in the coming weeks. This projection is in line with expectations that Solana will lead the next market rally.
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However, the market in general is still in a state of uncertainty. Bitcoin, the market leader, has struggled to regain the $100K level, and negative sentiment continues to weigh on trader confidence. This continued uncertainty is a challenge for altcoins like Solana, which often rely on Bitcoin's strong performance to sustain rallies.
Testing a critical application
Solana is currently trading at $185, showing resilience after successfully holding the 200-day moving average (EMA) at $175. This key level is often viewed as a strong indicator of long-term market strength, and the ability of SOL to defend underlines the asset's bullish potential.
On a weekly time frame, Solana continues to make lows, indicating a positive trend despite recent market volatility. This price action suggests that buyers remain confident in SOL's long-term prospects, stepping in to protect critical support levels. If the $175 mark remains a strong base, Solana is well-positioned for a quick recovery in the coming days.
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Holding above the 200-day EMA is a critical step in building momentum for a broader rally. Analysts and investors are watching this level closely, as it could pave the way for Solana to reaffirm key resistance points and possibly target new highs. However, if SOL loses this essential support, sales may come under more pressure.
Featured image from Dall-E, chart from TradingView
