Solana Faces $145 Resistance Amid 2.35% Daily Gain

Solana, a prominent cryptocurrency, has once again encountered significant resistance at the $145 mark, a level that holds both technical and psychological importance. This resistance aligns with the upper boundary of a long-standing descending channel and the neckline of a bearish head-and-shoulders pattern, creating a critical juncture for the cryptocurrency's price movement.

At the time of reporting, Solana was trading at approximately $144.3, reflecting a 2.35% increase for the day. However, this price advance was not supported by strong trading volume, which had decreased by 15% over the past 24 hours. This drop in volume suggests that market participants are cautious and awaiting clear signals before making significant moves. The lack of strong momentum indicates that traders and investors are potentially waiting for a decisive breakout or the formation of a bearish candlestick pattern to guide their next steps.

Historically, Solana's price has struggled to close above the upper channel boundary since May, with each rejection followed by a drop. Unless a strong daily close above $148 is achieved, another rejection at the $145 resistance level remains likely. However, if the current rally continues and the price breaks out of the upper boundary, it could potentially end the prolonged bearish trend and see an upside momentum of over 20%, reaching the $184 level. On the daily timeframe, Solana still sits below the 50-day Exponential Moving Average, indicating that bulls have not yet reclaimed dominance. The Relative Strength Index (RSI) is at 46, suggesting mild momentum but not enough to break out convincingly.

Despite the bearish indicators, one popular trader on X has predicted a bullish reversal, noting that Solana is showing signs of recovery after hitting a major low at $125.99. The expert suggests that a potential W-shaped pattern is forming, hinting at a bullish reversal toward the $150–$160 zone. This optimistic outlook contrasts with the actions of investors and long-term holders, who appear to be dumping Solana on exchanges. Data reveals a massive $21.07 million inflow of Solana into centralized exchanges over the last 24 hours, indicating potential selling pressure that could cause the asset to continue its downward momentum.

In summary, Solana's encounter with the $145 resistance level presents a critical moment for the cryptocurrency. While technical indicators and historical patterns suggest potential selling pressure, there is also a possibility of a bullish reversal. The actions of market participants and the formation of key patterns will be crucial in determining the direction of Solana's price movement in the near future.