Solana (SOL) has been under the watchful eye of the cryptocurrency market recently, with its price fluctuating near critical thresholds. The spotlight is currently on the resistance zone around $98, which SOL approached again in recent days, only to face renewed selling pressure, preventing it from breaking higher.
Breakout awaited in horizontal channel
According to charts shared by the analyst Ali Charts, SOL has been trading in a well-defined horizontal price channel since February. The lower boundary of this channel is near $78.17, while the upper bound stands at $97.79. Intermediate support levels are evident around $88.02 and $92.89.
In the past few days, Solana’s price attempted to breach the channel’s upper boundary at $98, but quickly reversed course, falling as low as $91. Notably, holding above $88 has so far helped preserve the structure of the horizontal channel despite this decline.
Ali Charts has observed, “If Solana closes a day above $98, target price levels are likely to emerge at $107 first, and then at $117.”
On the other hand, if SOL is rejected once more at the $98 mark, further downward movement toward the $88 region appears likely. A more significant drop could bring the principal support level at $78 into focus.
At present, a daily close above $98 is seen as a decisive threshold for Solana to exit the horizontal channel with upward momentum. Otherwise, the sideways pattern between $78 and $98 looks set to continue.
Short-term equilibrium near $93
A four-hour chart shared by MCO Global Español indicates that in the short term, SOL’s price has been stabilizing around the $93 mark. Recently, the price climbed toward $97 before retreating quickly down to $90.25.
Fibonacci analysis reveals that buyers mounted a strong defense between $91.97, which represents the 38.2% retracement, and $90.25, the 50% retracement level. As a result, SOL bounced back above $93, demonstrating that buyers continue to safeguard this short-term support.
The critical point here lies at the short-term low of $90.25. As long as the price stays above this benchmark, Elliott Wave scenarios suggest a fresh attempt at the $97 zone may be on the cards. Furthermore, if upward momentum gathers strength, resistance could be encountered between $110 and $112, with a broader target at $121.96.
Conversely, if SOL slips below $90.25, the short-term bullish outlook could weaken considerably. In that scenario, the price is likely to test previous major support levels at $77.95 and $75.40.
