As the cryptocurrency market moves sideways, Solana (SOL) is contracting between two important levels. Some analysts suggest that the cryptocurrency is about to break out and reclaim significant resistance, which could trigger the long-awaited retest of the $200 barrier.

Solana Holds Important Support

After recovering from last month's downtrend, Solana has attempted to regain the important $160 level to continue its upward momentum. This cryptocurrency has traded within the range of $140-180 for two months but lost the range after a brief breakthrough at the end of June.

Two weeks ago, SOL dropped below $130, hitting a two-month low of $126 on June 22. Since then, this altcoin has recovered, driven by Rex Shares launching a Solana Staked Cryptocurrency Exchange-Traded Fund (ETF) in the U.S. last week.

After the news, the price of Solana surged to the resistance level of $160 but was rejected, fluctuating between the price range of $145-155 over the past week. On Tuesday, SOL dropped below $150, hitting the support level of $147 before bouncing back.

Analyst Ali Martinez notes that the $147.59 region is one of the most important support levels for Solana, as losing this level could lead to a retracement to the next significant region around $141.

Similarly, market follower Man of Bitcoin asserts that the main support threshold that SOL needs to maintain is around $141.91, adding that "a sustained break below this level would indicate that wave C of (ii) has begun."

The analyst previously warned of a potential scenario "with one more low in wave 5," if the cryptocurrency fails to hold the $148 mark. However, maintaining this support level will build a foundation to target the local high.

Is SOL About to Retest $160?

Analyst Carl Runefelt from The Moon Show asserts that SOL "is about to break out" of the triangle pattern and test the resistance level of $162. As the price contracts between the upper and lower boundaries, the analyst believes that the cryptocurrency's breakout is very close.

Notably, Solana has formed a symmetrical triangle pattern over a week on the daily chart. If this cryptocurrency successfully breaks through the $152-$153 range, it could rise by 10.87% to a technical target of $167.

Cryptonomist emphasizes that SOL broke through the multi-day resistance level on Sunday, which has been retested and confirmed as support after bouncing around the $147 level twice since the breakout.

The analyst suggests that this cryptocurrency is preparing for the next bullish rally, targeting the weekly high and the resistance level of $160.

Meanwhile, Crypto Jelle notes that despite the bearish divergence in April, Solana continues to trade within the macro range of $125-180, currently fluctuating around the average range. For him, "it seems like it is just waiting for BTC to break out. Once it regains $160, $200 will come quickly. Above that, a new all-time high is within reach."

At the time of writing, Solana is trading at $151.51, up 3.6% over the weekly timeframe.