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Solana has extended its price decline below $200, but technical analysis shows that it continues to trade within a bullish setup. At the time of writing, Solana finds itself trading close to a support level that could determine its next major move.
This is because technical analysis shows that Solana is currently trading in a parallel channel that could drive prices to new highs, but holding above the $190 support level is crucial to this outlook.
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Solana’s Parallel Channel Supports Bullish Expectations
Solana’s price action in the past seven days has been highlighted by a notable resistance at $205. Particularly, Solana’s rallies have faced rejection at this price point about three times throughout the past seven days. This rejection is particularly notable given that Solana recently reached a new all-time high of $293 in the last 30-day timeframe. The stark contrast between this all-time high and the most recent struggle at $205 shows the intense volatility Solana has experienced in recent weeks.
Despite these fluctuations, technical indicators suggest that Solana remains in a well-defined parallel channel that has been directing its price movements since July 2024. This structured price channel consists of a sequence of higher highs and higher lows. Although there have been occasional pullbacks, the broader trend suggests that buyers are still in control and preventing a major breakdown to keep Solana’s bullish structure intact.
The presence of this parallel channel was emphasized in a recent technical analysis by Ali Martinez, a well-known crypto analyst. Martinez highlighted that as long as Solana maintains its position within this formation, there’s still the possibility for a recovery to $225, with a further extension toward $260.
These price projections are derived from Fibonacci extension levels, specifically the 0.786 and 1.0 Fibonacci levels, projected from Solana’s October 2023 low of $125. However, for this bullish outlook to remain valid, the analyst cautioned that Solana must hold above $190. Failure to maintain this support level could invalidate the upward momentum and cause a downside move.
Image from X: Ali_Charts
Why $190 Is A Critical Level For Solana
Despite the bullish trajectory, Solana’s ability to maintain support at $190 is crucial for sustaining upward momentum. This is because $190 is around the lower trendline of the parallel channel.
Solana has tested this $190 price level multiple times since the beginning of the month, even breaking below it when it bottomed at $184 on February 3. Although it has since recovered as buyers were active in defending the price, the continued proximity to $190 indicates lingering weakness and the risk of a deeper correction if bears manage to overpower bullish defenses.
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At the time of writing, Solana is trading at $193, down by about 1.47% in the past 24 hours.
Featured image from Medium, chart from TradingView
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