Solana is preparing for a new bull rally

Solana SOL $254.63 Solana -0.92% Market capitalization $120.87 billion VOL. 24 hours $1.48 billion is trading above an important support level around $ 157, which could signal a potential rebound after the latest decline. Despite market volatility, this critical level remains stable, and investors are now focused on Solana’s attempt to resume its uptrend.

Given the course of the US election and the approaching Federal Reserve interest rate decision, increased volatility is expected in the crypto market this week.

The well-known analyst and investor Carl Runefelt conducted a technical analysis, indicating that Solana needs to break through a key resistance level in the coming days to resume sustainable growth.

Rühnefelt noted that this level has kept the price under control, and its breakout is likely to bring investors new optimism.

However, there is a risk of further decline if Solana fails to gain a foothold above this critical resistance level. Against the backdrop of significant macroeconomic developments, Solana’s next moves will be closely watched, as a breakout of the resistance could signal a possible upside in the short term.

As you know, Solana is one of the most resilient assets in the current cycle, holding above a key support level that previously acted as resistance, so this moment could be crucial for the short-term trajectory of Solana, which is struggling to resume its upward movement.

According to Karl Runefelt, Solana is now facing a test at a level of downward resistance that is holding back its growth. His technical analysis published on the X platform points to this resistance at around $ 164.

A breakout above this level could lift Solana, signaling a return to growth.

Significant fluctuations are possible this week, as the US elections and the Fed’s decision could create conditions for market uncertainty and manipulation.

«If Solana breaks through this resistance and consolidates above $ 164, it could trigger positive sentiment, pushing the price to new local highs. In case of failure, selling pressure and a decline are possible, especially if the overall market volatility increases,» the analyst said.

Solana’s price is reported to be $ 161 after a recent rebound from a local low of $ 155. This movement formed a strong support level around $ 155, which proved to be important in holding back further declines.

To resume the uptrend, SOL now needs to break through the $ 165 resistance level, which will confirm the potential for growth. A sustained breakout above $ 165 could be a signal for buyers, paving the way for further growth.

If the breakout fails, the price could return to the next support zone around $ 150, which coincides with the 200-day moving average (MA), which often acts as a strong support level. This consolidation phase puts SOL in a crucial position, and the future direction of the price will depend on whether it can break through $ 165.

At the time of writing, the crypto asset’s rate is $ 182, the market capitalization is $ 85.77 billion, and traders have made daily trading deals worth $ 8.27 billion. At its peak at 6:20 am, the price of Solana was $ 187.8.

As a reminder, on Wednesday, November 6, bitcoin reached a new all-time high, exceeding $ 75,000 amid preliminary results of the US election, where Donald Trump is ahead of Kamala Harris.