2025-02-16 15:00:42 by NewsBTC

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. 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. SOL is currently trading at $193.79. Chart: TradingViewThese 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. 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 Scott Matherson Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers. 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His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others. Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry. Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors. 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