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SOL Failed to Break ATH, Will Critical Support Hold?


Solana (SOL) rallied 30% and almost touched the all-time high levels of $216 after breaking out above a pennant formation. SOL missed the ATH  price by just $1, according to Binance.

Key Support level: $192, $177

Key Resistance level: $216

The mentioned above pennant is marked blue on the following chart. The current all-time high of $216 will continue to act as SOL’s next major resistance area. Since then, SOL has found support on the $192 level. If the price decides to correct further, then the next support level is located at $177. Considering the massive momentum of the recent rally, a consolidation is reasonable.

solusd-oct23-p1

Technical Indicators

Trading Volume: Volume exploded as Solana broke above the blue pennant, leading to a rapid rally towards the all-time high resistance. Since then, the volume has decreased, supporting the idea of a consolidation period before the next move.

RSI: The RSI entered the overbought territory (>70) during the peak of the recent rally on the 4-hour timeframe. Since then, RSI dropped under 70 points during the ongoing correction from the past hours.

MACD: The MACD moving averages and histogram remain very bullish on the daily timeframe, while on the 4-hour timeframe, a minimal correction is underway. Price will look for a possible retest of the $192 support.

solusd-oct23-p2

Bias

Bullish since price broke the blue pennant. As long as SOL’s price holds above $177, there is an excellent chance that Solana can see a second attempt to break the all-time high of $216. On the other hand, if the price loses $177, it will invalidate this bias.

Short-Term Price Prediction for SOL

In the near future, Solana is expected to see some consolidation around the $200 mark. Should the support at $192 fail, Solana can explore lower levels ($177) before any new attempt to break the all-time high occurs. Expect significant volatility from Solana over the short term.

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Cryptocurrency charts by TradingView.



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