After a retreat from its recent peak of $183, Solana (SOL) is currently clinging to $165, a critical support level. If the altcoin doesn’t hold this level, it could see the downside risk, analyst Carl Runefelt told Coin IDNow.
Meanwhile, Runefelt’s technical analysis suggests that Solana could plunge briefly then recover and find its way back up to test its recent highs at $180. The coin needs to stay above $160 to continue the momentum up to push it to a bullish trend, he says.
Solana Eyes $160 Threshold Ahead
Whether Solana will indeed keep up its prolific pace while investors continue to follow the Bitcoin rally and pay close attention to Nov. 5 election next week, will be something to watch as Solana nears the $160 brink. Given that holding above this threshold could give SOL a catapult up past its resistance levels to $183 or higher.
Recent performance of the altcoin cemented its place among the standouts this cycle. If market conditions facilitates further gains, SOL could even reach new highs, according to Runefelt, but first, a stable hold at $160 could project investor confidence and kick off a fresh rally.
Analysts are keeping an eye on where SOL goes above $160, as it is expected to be very volatile. A break below this support may lead to a deeper correction, and a strong defense this support may propel a steady climb toward the $180 range.
