Crypto analyst Mammon revealed on X (formerly Twitter) that SOL’s current price action is poised to make a decisive move soon.
He mentioned that Solana’s (SOL) price has been consolidating within a defined range, showing signs of a potential breakout. Traders are eyeing key resistance levels as SOL continues to test critical zones, which could lead to significant price movements.
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Show more +Show less – Solana Technical Analysis: Consolidation Below Resistance
The chart shows Solana trading in a tight range, with its price consolidating beneath a crucial resistance zone. This zone, highlighted in red, has been tested several times, indicating a possible breakout is becoming more likely.
According to Mammon, this red supply zone represents the mid-range of a larger trading range. The SOL price has been stuck in this “discounted” part of the range, a region where many traders are considering entering long positions.
The consolidation has created a potential launchpad for upward movement as traders await a break above the red zone. Should SOL move past this resistance, the next target would be around $180, where minimal resistance lies, as noted by Mammon. This presents a clear opportunity for traders to ride the upward momentum if a breakout occurs.
Beneath the current price action, the grey box on the chart marks a crucial demand zone. This area could provide support if the price retraces, offering a possible entry point for traders looking to go long. The analyst also suggests that if SOL dips into this zone, especially near or below $150, it may present a favorable buying opportunity.
Image Source: X/Mammon
Mammon prefers to stay bullish, focusing on long positions from $150 and below. However, he also notes that if the SOL price first tests the supply zone without forming a solid higher low, there could be an opportunity for a short trade.
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Solana Price Potential Breakout Scenarios
The technical setup points to two possible outcomes. If SOL continues to form higher lows and breaks above the red supply zone, it could trigger a rapid move toward $180. The ascending trendline supporting the price action indicates bullish momentum, increasing the likelihood of an upward breakout.
On the other hand, if the SOL price fails to break through the resistance, a pullback to the grey demand zone is possible. This would offer a chance to assess long positions at lower levels, depending on the market’s reaction.
Mammon’s analysis emphasizes the potential for a sharp move if Solana clears its current resistance levels. With several tests of the red supply zone already completed, the likelihood of a breakout continues to grow.
Finally, as the market awaits a clear breakout, traders seeking to take advantage of long and short opportunities should keep a close eye on the supply and demand zones. Traders will be monitoring these critical levels closely, as SOL’s next move may determine whether it continues higher or experiences a brief downturn.
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The post Key Levels Suggest Solana Price Could Break Out Soon – Here’s the Outlook appeared first on CaptainAltcoin.
