Welcome traders and investors! Let's take a quick and deep look at the current situation of SOL, which is on the minds of many these days.
Solana currently stands at an extremely critical crossroads. We are witnessing a violent struggle between the bullish forces (bulls) and the bearish forces (bears) right at the psychological and technical support level of $180. I cannot overstate the importance of maintaining this level! Staying and continuously trading above $180 is not just a passing number; it is a fundamental pillar for the continuity of bullish momentum, and it may support the scenario of forming the 'cup and handle' pattern, which promises much good for buyers.
However, we must be realistic and consider alternative scenarios. If we fail to hold at $180 and experience a close or consistent trading below this barrier, it will indicate a clear weakness in the currency. In this case, unfortunately, we may see SOL heading towards a lower support area ranging between $135 and $155. This scenario, though undesirable, would effectively negate the 'cup and handle' pattern we have been monitoring.
However, even in the worst-case scenario, there is still a glimmer of hope! If this pullback occurs, we are likely to see the formation of a 'double bottom' pattern at those lower levels. The interesting thing here is that the targets of this 'double bottom' - if successfully executed - will be exactly similar to the targets we were expecting from the 'cup and handle' pattern. This means that the currency has a chance to recover strongly even after any potential pullback.
Summary:
The close monitoring of the $180 level is key to understanding the upcoming movement of SOL. Keep your funds safe, and be ready for both scenarios!
