Solana (SOL) is stabilizing just below a key resistance zone as traders watch for a potential breakout. TradingView data shows the token trading near $86.71 on March 12, down 0.55% over the past 24 hours. Crypto analyst More Crypto Online noted in a chart shared on X that Solana must break above the $88–$91 resistance range to trigger a bullish breakout attempt.
A breakout through the resistance zone would indicate an upward momentum breakout. But a failure to hold support above $84.40 will indicate that a larger correction may begin.
Per the chart provided by More Crypto Online, SOL appears to be moving into a sideways consolidation pattern. The asset is currently being held back by weaker momentum signals.
According to the chart shared by the analyst, the Solana price has been trading within a very tight band of resistance and support levels. This range formed after the significant decline in Solana’s price earlier this year.
If Solana’s price drops through the support price of $84, it would be a confirmation that there is a Wave 3 to the downside. A Wave 3 indicates a strong decline and is typically associated with the greatest degree of bearishness.
Additionally, the analyst believes that the current upward movement in SOL may be part of a B-wave (a short-term reversal), which is still part of a long-term downtrend.
A B-wave is a short-term rally, which reverses direction but does not last long enough to be classified as a full wave. Market data from TradingView showed that the SOL price has declined roughly 5.7% over the past week.
Source: TradingView
Also Read | Solana Signals Bullish Reversal: Can SOL Break $90 and Rally Toward $120?
According to TradingView’s technical indicators for SOL, the coin’s current market momentum is neutral. The RSI reading for Solana is currently 53.
The reading indicates that there are no overwhelming buying or selling pressures. According to the RSI, both bulls and bears are waiting to see what direction the SOL price will take next before they make their next move.
Based on the RSI reading, it can be concluded that SOL is currently consolidating its price movement. Additionally, the coin is trading below the 200-day EMA, which signifies that the trend is down over the long term.
The signs produced by the MACD and histograms appear to be neutral. Although the MACD indicator is displaying some bullish convergence. The histogram indicates that the coin is near neutral, consistent with the analyst’s position that Solana is in a state of consolidation.
Source: TradingView
Even though SOL remains in a state of consolidation, traders remain actively involved in the derivatives markets. CoinGlass reported that the total trading volume in Solana futures contracts in the past 24 hours is approximately $13.2 billion.
Open interest has grown by approximately 1.99%, or roughly $100 million, to $5.17 billion. Increasing open interest during a sideways price condition can be indicative of traders establishing new positions in anticipation of a potential price breakout.
Source: Coinglass
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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