Solana Consolidates Above $130, Aims for $136 Breakout

Solana, a prominent cryptocurrency, has entered a consolidation phase above $130, indicating potential for a significant breakout. According to a technical analysis shared by RLinda on the TradingView platform, the $136 level is a critical resistance point. If Solana manages to surpass this threshold, it could trigger a fresh bullish momentum, despite the overall bearish global market conditions.

The current price structure of Solana reflects a recovery after a false breakdown below the range support zone. This false breakdown occurred between the last week of March and the first week of April, when the Solana price briefly dipped below $100. This decline was an extension of a previous drop from a key support range between $115 and $108. Following this brief dip, Solana quickly rebounded, with renewed buying pressure pushing its price back above $130. However, this upward momentum has started to slow down, with resistance at $136 and a consolidation phase between $130 and $136.

This consolidation range is crucial for Solana’s bullish potential. The recent false breakdown has created a liquidity imbalance, which could favor upward price movement as Solana bulls aim to reclaim the upper zones above $136. A sustained move above $136 could serve as the initial trigger for a breakout, potentially shifting short-term market sentiment in Solana’s favor. This bullish potential is notable, even as the global market situation remains bearish.

RLinda’s analysis categorizes the local Solana setup as neutral, indicating that the price is in a range rather than exhibiting a definitive trend. Crypto market dynamics also support the bullish outlook for Solana. Bitcoin, the dominant force in the crypto market, is itself undergoing consolidation and has been highly correlated with Solana’s movements in recent weeks. Should Solana manage to close and consolidate above $136, the chart opens up to a sequence of local targets, with the $140, $147, and $152 levels becoming the following areas of interest.

At the time of writing, Solana is trading at $134.80, up 0.5% in the past 24 hours and 15.6% in the past seven days. Even with the bullish outlook, minor corrections may still occur. In such a scenario, the Fibonacci 0.5 retracement, located around $125.28, will provide a cushion for price corrections. Any short-term dip from the current price level may be met with strong support and accumulation at the Fib retracement. Other support levels are at $129, $123, and $111.