Solana's Price Faces Resistance at $180, Analyst Warns of Risks

Solana's price has encountered resistance, halting its recovery before reaching the $180 mark and triggering a downward trend. However, a crypto analyst has advised investors to remain patient during this period, emphasizing that rushing into the market at this level presents significant risks.

The analyst, SiDec, highlighted that the $175-$183 range is a historical resistance zone for Solana, making it a common exit point for investors following recent market declines. Additionally, smart money is seeking liquidity at these levels, increasing the likelihood of false breakouts. SiDec cautioned that investors should wait for one of two scenarios: a pullback towards a "confluence-rich support zone" or a clean breakout above the $183 resistance, followed by a retest and confirmation.

The analyst identified two key zones for Solana's price: $179.85, which has already been tested, and $180.52, which has not. A break above the latter would signal a strong bullish continuation. Furthermore, the completion of a 5-wave sequence, according to the Elliot Wave Theory, suggests that the bull rally for Solana may be over, with a potential correction ahead before a bullish continuation.

The formation of the Fib Speed Fan pattern, drawn from the all-time high at $295.83 to the swing low at $95.26, aligns with the resistance zone, indicating a potential rejection or pause. The analyst suggested possible entry points for long and short positions. For bulls, the $165.42-$164.25 level presents an opportunity, while short traders may find a reversal play and entry at $200.