- Solana price, currently testing critical support at $176–$178, has the 200 EMA at play here too.
- Solana price bounces off $205 as resistance, room for a higher setup if above $180.
- Low volume during Solana’s pullback implies weak demand reduced the likelihood of a bounce.
Solana price is the latest crypto to be involved in a pullback after rising to reach the price of $205. With the price reaching important support at the levels of $176 and $178, questions have been raised about whether the asset can maintain its bullish rally above the $180 mark. This region has been the region of relief, and traders are monitoring the price movement carefully to see any indication of a recovery.
Key Support Zone at $176–$178 A Critical Test for Solana Price
Analyst AltcoinSherpa notes that the support range between $176 and $178 becomes a critical point in the price movement of Solana. The buyers have come in whenever the price is close to this range, which has played the role of strong support. As Solana price tests this level, it will serve as an important test as to whether the uptrend could extend further or decline, possibly down to about $170 or below.
Source: AltcoinSherpa/X
This makes this zone even more important, considering the level the 200-period EMA is converging at around 4178. The 200 EMA is also quite important as it usually offers a much-needed foundation when markets are in an uptrend. Should Solana price continue trading above this level $176-$178, it would imply that the bullish momentum has not weakened and this price is a strong level to watch against a potential move towards $200 or beyond.
In case Solana price declines below $176, it may change to a bearish direction,the next lowest support is at $170, there is a possibility of a further decline of Solana price to $160. As per analyst GreenyTrades, the present low volume is an indication to show that there is a lack of selling pressure, therefore in the event of a breakout it will need an increase in volumes for validation.
Source: GreenyTrades/X
In case the volume increases and the price action of Solana creates a reversal pattern, the potential breakout toward the upside may enable it to grow above the level of $180, signaling another extension of the positive trend yet the major resistance is associated with the area of $185 and $190. These levels should be monitored closely by traders to confirm the direction of the market.
Read Also:
