- Solana is testing a critical short-term support zone between $174 and $178.
- A massive, multi-year “Cup and Handle” pattern on the weekly chart has a target of $2,500.
- A successful hold of the current support could validate the explosive long-term thesis.
As the crypto market stages a recovery, Solana is in the spotlight as it consolidates above a crucial support level, and one top analyst is flagging it as a strategic area for traders to pay close attention.
“A Good Area to Buy” with Clear Risk Management
According to Altcoin Sherpa, Solana’s price is holding a key support zone between $174 and $176. He described this area as “a good area to buy” or build a position using dollar-cost averaging.
This area coincides with the 200 EMA at roughly $178, creating a strong confluence of demand. Previous rebounds from this level suggest buyers are defending it, keeping hopes alive for another move upward.
Resistance stands at $185–190, while a breakout could open the door toward $205. However, a breakdown under this zone risks exposing the token to a decline toward $165–168.
For traders applying dollar-cost averaging, adding around the support band makes strategic sense. Still, Altcoin Sherpa stresses that risk management must be central, as a clean loss of support would invalidate the bullish setup.
This tactical uncertainty comes as the market digests Solana (SOL) Price Dips 5% Despite “Record-Breaking” TPS Announcement.
Cup and Handle Breakout Signals Big Upside
On a higher timeframe, Bitcoinsensus presents a far more ambitious scenario. Their analysis highlights a textbook Cup and Handle formation unfolding on the weekly chart. After years of consolidation, SOL has broken above the handle, signaling strong continuation potential.
The technical target from this formation extends as high as $2,500, a level that would represent a dramatic surge. Key hurdles along the way include $280, followed by psychological resistance zones near $1,000 and $2,000. A successful retest of the $180–200 breakout band would greatly improve the probability of Solana achieving new all-time highs.
Indicators and Market Sentiment
The on-chart indicators support this picture of consolidation. The MACD is flattening near the zero line, and the RSI is sitting at a neutral 55. This indicates that momentum has cooled off, and the market is in a state of balance, waiting for a catalyst to force the next major move. This technical picture reinforces the idea that the current support level is the primary battlefield for bulls and bears.
While some analysts have noted a much larger, long-term pattern with highly ambitious targets, the immediate focus for traders remains squarely on this tactical setup. The current battle at the ~$175 support zone is backed by a strong fundamental picture, as seen in the report Solana (SOL) Institutional Adoption Surges as Public Companies Amass $591 Million.
Despite a 7.7% decline over the past week, the coin has gained traction today, with a modest price increase to $180.85.
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Source: https://coinedition.com/this-is-a-good-area-to-buy-solana-says-top-analyst-citing-key-support/