Solana (SOL) shows stability in the market, but technical patterns raise concerns among analysts. Let's explore current trends and expected scenarios.
Rising Wedge: Risks and Opportunities
Analyst Ali (@ali_charts) pointed out a clear rising wedge forming on the SOL/Tether chart, which has been developing since June. This pattern is defined by converging trendlines, with the price consistently making higher highs and higher lows. The structure reflects slowing momentum and waning buyer conviction as the wedge tightens.
A rising wedge that appears after an extended upward move often signals a possible reversal. The expectation of a breakdown could push SOL towards $160, aligning with previous structural support and Fibonacci reference points.
Short-Term Market Performance of Solana
As of writing, Solana is priced at $203.33, with a slight gain of 0.56%. Previously, the price fell below $201 but has recovered, confirming strong buying interest around the psychological level of $200, which remains a short-term support.
The current market capitalization is at $110.18 billion, with a 0.69% increase, indicating consistent investor trust. However, trading activity has calmed down, with the 24-hour volume falling by 41.97% to $2.96 billion.
Supply Metrics and Trading Scenarios
The total supply of Solana stands at 609.18 million tokens, of which 541.88 million are in circulation, implying that almost 89% of the total supply is restricted. This limits new supply while leaving long-run supply unrestricted.
For trading scenarios, price behavior around the $200 mark will be pivotal. For bearish setups, short positions are valid after a confirmed breakdown and retest of the wedge’s lower boundary, targeting $192 and $176.
The situation in the Solana market remains volatile, and the importance of monitoring technical patterns and support levels will be critical for traders in the near future.
