Solana Price Tests Key Support Level, Will It Rally Above $300?

Solana ($SOL) price approaches an essential support threshold while operating in an established parallel channel structure.

The direction of cryptocurrency movements at this support threshold will shape future trend patterns.

Analysts have weighed in on whether SOL will continue holding its current position above the support level or break below it.

Solana Price Retests Lower Boundary of Parallel Channel

Crypto Analyst Martinez noted that Solana price maintains its position within a parallel channel structure along its lower boundary at between $185 and $193.

Past price movements in this area of support have created fundamental influences on price trends.

The digital asset demonstrates resilience for its upper and lower boundaries in this structure.

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Additionally,  the analyst emphasized that Solana price ability to sustain this support level suggests that it will continue building its bullish market structure.

A solid defense of this support level enables buying pressure which strengthens market belief in Solana price.

Upside Towards $387 Resistance Target

Ali Martinez further predicts that Solana price will rise toward the $387 resistance target if it manages to stay above its support area.

A rise from current price points would establish conditions suitable for breaking through immediate resistance levels at $210.

Technical indicators based on Fibonacci retracement levels converge in the anticipated resistance area.

This strengthens the potential for price growth if the support area holds. The potential price movement to $387 would constitute a significant growth above existing levels.

However, breaking down below the support might erase the potential upward movement.

Selling pressure would increase when the SOL price falls below the parallel channel’s lower boundary and would  perform a support retest at lower levels.

A price drop would change market sentiment in a way that could fuel additional downward price action.

Solana Technical Analysis

On the technical indicators outlook, the MACD line is showing a slight upward movement, signaling the possibility of emerging bullish momentum.

The signal line remains slightly below the MACD line, indicating a developing positive trend but still lacking strong confirmation.

The current readings suggest that buyers are slowly gaining control, although the momentum is still in the early stages.

Moreover, histogram bars are transitioning from negative to near-positive territory, reflecting diminishing bearish momentum.

The shrinking red bars signal a gradual shift in sentiment, with the potential for the histogram to flip to green if the buying pressure increases.

If confirmed, it may align with broader price movements, particularly if Solana sustains support near $193.

Meanwhile, a recent analysis indicated potential for a SOL price rally to $350 if bullish momentum strengthens, with key resistance at $220 and $300.

However, failure to hold the $200 support could lead to a drop toward $160 or $150.

At press time, Solana (SOL) is trading at $197, up 3.39% in the past 24 hours with a market cap of $96.42 billion.

With a 24-hour trading volume of $2.59 billion, the token is nearing the key $200 resistance level.