Solana is attempting to recover again, and Fibonacci levels show the possibility of a leg up, approaching the $171 level.
As of November 11, Solana (SOL) is trading at $164, a clear pullback after peaking just above $170 around November 10. In the past week, the price has seen a net gain of 4% despite choppy volatility, amid market correlations with Bitcoin’s dips. With the bearish bias still in place, will Solana defy the resistance or drop further?
Can Solana Break Past $171?
Looking at the daily chart, Solana is in a consolidation phase and could be setting up for either a potential reversal or continuation of the downtrend. The 0.236 Fibonacci level, set above $189 on the daily chart, represents the initial resistance, indicating that Solana has struggled to break above this level.
The next important level to watch is the 0.618 Fibonacci level at $163.59. At the time of this writing, the price is hovering just above this point. If Solana finds support at this level, it may reverse higher and retest key resistance levels.
The Relative Strength Index (RSI) on the chart is currently at 40.28, signaling that Solana is in the oversold region, just below the neutral level of 50. This suggests weakening momentum. As the price approaches the critical support zones, the RSI will be crucial in determining whether Solana can stage a recovery.
If the price holds the $163.98 support, it may begin to bounce and challenge the $171.56 resistance. However, if the price breaks below this support, it could fall further to the $152.26 region.
Market Analysts Share Thoughts
Elsewhere, Lark Davis, a well-known crypto analyst, recently shared his thoughts on Solana’s current price action, emphasizing the mounting resistance the asset faces. Davis specifically mentions how SOL is facing a wall of resistance.
In his post, shared on X, he points out that the convergence of the daily 20 EMA and a downward trendline at key Fibonacci levels, specifically the 0.5 and 0.618 levels, reinforces this resistance zone.
Davis further explains that this area will be crucial in determining Solana’s next move, stating, “This area decides the next leg.”
Ali Martinez, another prominent analyst, believes the key support level for Solana is at $147.49. His analysis is based on the UTXO Realized Price Distribution (URPD).
It shows that the highest concentration of realized prices for Solana is near this level. Martinez’s view is that if Solana’s price were to drop to this region, it could find strong support.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
