Solana (SOL) Shows Strength Above $130.0: Will Bullish Momentum Sustain?

Solana (SOL) has been quite stable and is currently trading at $134. 06, marking a 1.91% over the past 24 hours. However, there is a positive trend in this regard, although the overall market sentiment is still conservative due to high fluctuations. 

The price is in the middle of a falling wedge pattern, which indicates that there will be a consolidation period. Bulls have to demonstrate the power to move above this pattern and keep the upward movement. If they fail, SOL might lose its 200-EMA support at $130, which may lead to the price going down to the lower support zones that are essential for a trend reversal.

The trading volume of Solana within the last 24 hours is $2,000,896,964, but it has declined by 5.85% which shows that there is less buying interest. Nevertheless, the market cap has increased by 1.90% to $61,937,697,241, which is an indication of the bullish sentiment within the community.

SOL Exhibits Mixed Outlook

Momentum indicators give a mixed signal. Ichimoku cloud has now gone bearish, which indicates that there may be pressure downwards. However, the price action in the last few days indicates a slight bullish divergence, with Solana rising from the $128 support level and finding resistance between $140 and $144. This resistance zone still remains a major hurdle as the price has been rejected several times showing that there is a lot of selling pressure.

For a bullish reversal, Solana needs to break out above the $144 level and an ideal target above $160 to encourage investors. The short-term outlook is still bearish until such a breakout happens, although there may be some consolidation in the form of sideways movement.

Market analysts have pointed out that the recent decrease in volume is quite rare for Solana and may result in compression. This compression might lead to a breakout, which in turn may bolster the rally depending on the volume driven direction. However, Solana’s short-term trend and momentum remain bearish even though the broader trend is bearish. However, if the price breaks above the $144 to $160 range, then the trend will turn bullish.

The current Solana price at the level of $134.0 shows there is no bullish signal yet and therefore, in the short term, Crypto World analyst Josh is more bearish than bullish. He pointed out that Solana is still in a short-term bearish trend, although there was a short-term bullish divergence. Solana fell from the $128 support level and then found some resistance; it was rejected several times in the $140-$144 area. This area remains as a firm resistance level while the support is between $120 and $128.