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Solana finally broke through the $150 resistance level, creating a foundation for a rally continuation. This milestone is a significant one as the resistance level SOL broke was considered a barrier between the bullish and bearish market.
However, despite the breakthrough, there is a noticeable decline in trading volume. This could potentially indicate a lack of conviction behind the move, raising questions about the sustainability of the price above this level. If the volume does not pick up, it might suggest that the break above $150 may not hold, possibly leading to a price correction.
The 26-day and 50-day EMAs are overhead, reflecting significant resistance levels that SOL must conquer to maintain its upward momentum. If these levels are not surpassed with confidence and accompanying volume, they could act as catalysts for a bearish reversal.
For a growth scenario to unfold, Solana needs to establish a new support level above the recently breached $150 mark. If SOL manages to maintain its position above this line, the next challenge will be taking on the EMAs.
A convincing break above the 26-day EMA around $160 and the 50-day EMA could clear the path toward higher price points, with $170 serving as the next psychological resistance.
Looking at the future for Solana, a continued rise will depend on the market sentiment post-halving, project developments and the capacity of buyers to drive and sustain higher prices. Meme coins may also act as a strong catalyst for Solana.
Solana's price action presents an exciting yet precarious situation. With key resistance levels ahead, and the need for increasing volume, Solana needs much more buying support than it has now considering the current state of the cryptocurrency market. Unfortunately, the possibility of a reversal is still shady.
Alex Dovbnya
