Solana price on a slippery slope despite bullish breakout signals
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Solana (SOL) is experiencing a tense period of consolidation as traders weigh breakout opportunities against the risk of further downside.
After a sharp rally that propelled SOL toward $210 last week, the cryptocurrency has slipped to around $180, reflecting a seven-day decline of 7.7%.
While technical signals point to bullish continuation patterns, near-term price action remains fragile, leaving investors cautious about the next directional move.
Consolidation in the $180 zone
SOL has stabilised near the $183–$184 cluster, a zone defined by the convergence of its 20, 50, 100, and 200-day exponential moving averages.
This level has acted as a magnet for the price, establishing a near-term decision area where bulls and bears are testing their strength.
A sustained hold above $183 would preserve the potential for a constructive base, but any breach below the $179 support level could allow sellers to regain control, potentially pushing SOL toward $175 or even lower levels.
Momentum indicators are currently neutral, with the Relative Strength Index (RSI) hovering around 50.
This equilibrium signals that SOL is at a crossroads, waiting for a catalyst to determine whether buyers or sellers dominate the next phase.
Derivatives data also shows elevated open interest of roughly $10.2 billion, with a slight skew toward long positions, indicating that traders are prepared for volatility.
Despite these bullish positioning signals, recent liquidations on the long side hint at caution and the risk of short-term pullbacks.
Patterns suggest a bullish outlook
Several technical patterns point to potential upward momentum.
As highlighted by BeLaunch, on the daily chart, SOL is forming a bull flag, a classic continuation structure that suggests a breakout above the $190 resistance could ignite a rally toward $258.
The weekly chart also highlights a V-shaped recovery pattern, with the neckline resistance at $260.
Notably, maintaining above $200 will be critical to confirming this longer-term bullish scenario.
The recent ABC pullback following a bounce from the psychological $160 level and the breakout from a falling wedge pattern further supports the case for upward momentum.
Consolidation above the $175–$180 range demonstrates the cryptocurrency’s ability to absorb selling pressure while maintaining a bullish structure characterised by higher highs and higher lows.
A healthy pullback and overextended correction
Despite these bullish patterns, Solana faces near-term hurdles.
The immediate resistance between $188 and $190 has capped rebounds, and a failure to break through could trap SOL in a sideways channel.
The $162–$175 support zone is critical, with dips in this range offering potential accumulation opportunities rather than indications of trend reversal.
Volume flows reinforce the cautious optimism. Net inflows of around $750,000 during consolidation signal dip-buying interest, although the volume is modest relative to previous outflows.
This suggests that while there is genuine demand, conviction remains tentative and highly dependent on the market’s next directional cues.
Solana price outlook slippery yet promising
Going by the technical analysis we have shown above, Solana price remains in a delicate position, trading around $180 while exhibiting bullish patterns that hint at a potential push toward $200–$210 and, in the medium term, toward $258–$260.
The cryptocurrency’s short-term path will likely hinge on the ability to maintain key support levels while overcoming the $188–$190 resistance zone.
Traders and investors should brace for continued volatility, balancing the cryptocurrency’s bullish structural signals against near-term downside risks.
The post Solana price on a slippery slope despite bullish breakout signals appeared first on Invezz
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