Despite ETF Speculation, Solana (SOL) Shows Promising Base Structure
Despite the ongoing speculation around Spot Solana ETFs having minimal chances of approval this year, Solana ($SOL) has established a solid base structure that suggests potential for future gains.
$SOL’s Short-Term Price Action
In the short term, $SOL’s price action mirrors that of Bitcoin ($BTC). Recently, $SOL broke out of a downward trend but has struggled to gain momentum since then. Currently, it remains above critical support levels:
- Strong support at $137
- Horizontal support at $141
This price behavior is reminiscent of Bitcoin’s recent movement, where a significant dip followed by a V-shaped recovery led to a period of sideways consolidation.
Key Levels for $SOL
Analyzing the weekly chart provides a broader perspective on $SOL’s price levels:
- Top Resistance at $202: This level has consistently been a point of rejection and was a strong resistance and support level in previous bull markets.
- Base Support at $78.75: This level represents the absolute bottom of $SOL’s base price structure. A retest in January confirmed this level as support.
- Major Support at $137: Currently, $SOL is holding at this level, which has previously acted as both support and resistance during the 2021/2022 bull market. Despite several wicks and candle bodies breaching this level, it has never closed below it.
Future Price Outlook
Given the strong support at $137, it is unlikely that $SOL will fall below this level significantly. Should the price breach and confirm below $137, it could potentially drop to the $110 level or even revisit the $178 support. However, this scenario is not anticipated.
Instead, it is more probable that $SOL will trend upwards from its current position. Immediate resistance is expected at $173, with a target of reaching the previous local top at $202. The all-time high of $260 remains within reach, with potential for $SOL to approach this level in the coming months.
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