Solana Price Maintains $166 Support After Falling from $183; Surge Above $177 is Crucial.
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Solana (SOL) has faced challenges in maintaining its momentum following a peak around $183 on May 14. Since then, its price action on the 4-hour chart has lacked clarity, with the cryptocurrency retreating to test a critical support area close to $166.
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Currently, Solana is priced at approximately $169.43, showing a slight increase of 0.70% for the day, as it strives to uphold this vital support level and establish a base for potential upward movement. Notably, technical analysis on the TradingView platform has suggested possible directions for Solana in the upcoming days.
Support at $166 Holds, Break Above $177 or $183 is Bullish
Recent insights from TradeCityPro on TradingView indicate that the $166.82 mark is a crucial short-term pivot for Solana. Following a bullish surge from $142.25 to $177.51, the asset attempted a breakout above that resistance but was quickly turned down at $183.86.
This rejection led the price back below $177.51, prompting a retest of the $166.82 zone. Importantly, this support level has been tested twice and has proven resilient. The 4-hour chart displays robust bullish candles forming around $166, indicating substantial buying interest at this price point.
Considering this, a breakout above either the $177.51 or $183.86 resistance would signal a buying opportunity, especially if it is preceded by the formation of a higher low and a higher high.
Until such a breakout takes place, the current situation reflects uncertainty. A successful breakout and a daily close over $177 accompanied by increasing volume would likely pave the way for another move toward the $190 to $200 range for Solana.
Chart Image From TradingView
Short Positions May Be Viable Below $166 Support
However, market volume has diminished compared to levels seen last week. Currently, Solana’s trading volume over the past 24 hours is $2.3 billion, reflecting a 36.15% drop from the previous day. Therefore, a fresh wave of energy will be necessary to propel Solana past the resistance at $177 and $183.
At this moment, Solana is consolidating just above $166, and a failure to maintain this level could lead to a retest of the deeper support at $142.25.
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If sellers gain traction and push prices down, the next significant demand zone is at $142.25, which marked the start of the previous bullish rally. Given the price’s response to this level earlier on April 30 and May 6, it is anticipated to act as strong support again if revisited.
At this time, Solana is valued at $171, having risen by 1.6% over the last 24 hours.
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