Solana (SOL) forms strong base for next stage of bull market

Despite all the noise around the Spot Solana ETFs having almost zero chance of being approved this year, the $SOL price has formed a beautiful base structure from which to go higher.

$SOL follows similar short term price action to $BTC

Source: TradingView

For the short term price action, it can be seen that the $SOL price broke out of a downward trend, but has really failed to find any momentum since doing so. That said, it is above the very strong support at $137, and also above another horizontal support at $141.

The price action here is quite similar to that of Bitcoin, in that there was a big dip, caused by the Japanese yen carry trade unwind, and a v-shaped recovery, which has settled into some sideways consolidation.

Three major levels for $SOL

Source: TradingView

Zooming right out into the weekly chart, which gives a macro outlook, three major levels can be seen. The top (blue) horizontal level is where the $SOL price topped out, and faced constant rejection from this $202 level. Looking left to the previous bull market, it can be seen that this level also acted as strong resistance and support.

The lowest level at $78.75, marks the absolute bottom of the base price structure for $SOL. A wick back down to this level in January, after the price had already passed through it, served to retest the level and confirm it as support.

The major support level (the middle of the 3 lines) is where the (SOL) price is being held currently. This level also acted as major support and resistance in the 2021/2022 bull market. For this bull market, the price has wicked down through through this level several times, and candle bodies have even gone below, but they have never closed there.

This signifies that $137 is an absolutely massive level of horizontal support. If the price drops through here and confirms below, it would likely drop all the way back to the $110 wick down caused by the Japanese crash, and could even fall all the way back to the $178 support level.

This is certainly not expected. Instead, the $SOL price is more likely to drive upwards from here. Resistance would come in at $173, but after that, the target would be the previous local top at $202. The all-time high is just above this at $260 – expect $SOL to potentially get here at some point in the next few months.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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