Solana (SOL) is going through a turbulent period after experiencing a significant 33% correction from its all-time high of $264 reached in late November. Despite the sharp pullback, Solana is showing resilience and offers investors a promising long-term outlook.
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Renowned crypto analyst Carl Ranfelt recently shared his insight on X and highlighted a compelling technical setup for SOL. According to Runefelt, Solana has successfully retested a massive triangle pattern on the weekly time frame. This critical retest suggests that the price of Solana remains intact and could serve as a launching pad for a significant rally soon.
While broader market corrections have dampened short-term sentiment, Solana's ability to maintain its structural integrity amid the downturn provides a glimmer of hope for bulls. If SOL can maintain its current levels and build momentum, may soon recover lost ground and chart a path to new highs. Analysts will be closely watching how Solana responds to this important technical signal, as it could determine the direction of the altcoin in the coming weeks.
Solana has an ascending structure
Despite a 30% decline from its highs, Solana (SOL) is maintaining a bullish structure on higher time frames, indicating long-term strength. That flexibility has analysts and investors optimistic about Solana's potential to outperform once the market rebounds. Known for its strong fundamentals and rapid adoption, SOL continues to be a favorite among traders anticipating the next altcoin rally.
Carl Ronfelt, top cryptocurrency analyst Recently shared a detailed technical analysis on X, highlighting an encouraging role model for Solana. Runefelt revealed that SOL has successfully retested a massive triangle on the weekly time frame, marking a turning point for its bullish trajectory.
Based on his analysis, if Solana can sustain above $180, the digital currency could reach $330 in the coming weeks. This forecast is consistent with expectations that Solana will lead the market in the next rally.
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However, the broader market remains in a state of uncertainty. Market leader Bitcoin has struggled to reclaim the $100,000 level and negative sentiment continues to weigh on traders' confidence. This lingering uncertainty poses challenges for altcoins like Solana, which often depend on Bitcoin's strong performance to sustain rallies.
Critical demand testing
Solana is currently trading at $185, showing resilience after successfully holding the 200-day EMA at $175. This key level is often considered a strong indicator of long-term market strength, and the SOL's ability to defend it underscores the asset's upside potential.
On the weekly time frame, Solana continues to hold its lows, indicating a positive trend despite recent market volatility. This price action shows that buyers are confident in SOL's long-term outlook and are stepping in to defend critical support levels. If $175 serves as 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 closely watching this level, as it could pave the way for Solana to retest key resistance points and target potential new levels. However, if SOL loses this critical support, it may face increased selling pressure.
Featured image from Dall-E, chart from TradingView
