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Solana (SOL) is currently trading within a tight consolidation range, leading prominent market watcher Edward to anticipate a potential breakout.
The cryptocurrency’s price has been oscillating between $143.33 and $144.70, without making a decisive move in either direction.
Edward confirmed in a TradingView analysis that SOL is showing hesitation but may soon break out of this range, a move that could determine its next major trend. Several factors are influencing the price, including technical indicators and broader market events.
Consolidation Phase and EMA
Per the analyst, SOL’s sideways movement has created a defined trading range, with prices consistently testing both support and resistance levels. The current consolidation pattern has traders anticipating a breakout to the upside or downside.
Edward points out that the price is trading below both the 34-period and 89-period exponential moving averages (EMAs), which indicates that the short-term momentum remains slightly bearish. However, if SOL can break above these key moving averages, the market could witness a shift in sentiment.
This setup has left the analyst preparing for two potential scenarios. A bullish breakout above $144.70 could push the price toward the next resistance level of $150.54. Conversely, a bearish move below $143.33 could trigger a pullback to $137.25, creating a key support level to watch.
Solana’s Potential Catalysts
While the technical factors suggest mixed outcomes, broader market events may also help in determining Solana’s price movement. Notably, market analyst Geoff Kendrick from Standard Chartered predicted significant gains for Solana, especially in light of political developments.
Kendrick believes Solana could surge by up to 500% if Donald Trump wins the 2024 U.S. presidential election, driven by expectations of a favorable regulatory environment for crypto assets under a Trump administration.
According to Kendrick, Solana’s ecosystem could benefit from such a scenario, with the approval of a Solana spot exchange-traded fund (ETF) potentially driving demand and price.
Market Sentiment and Crowd Perception
Adding to the current uncertainty around Solana’s price is the bearish sentiment observed across the market. Data from Santiment, a market intelligence platform, shows that Solana, along with other top cryptocurrencies, has been subject to negative crowd narratives.
Historically, assets experiencing a downturn in sentiment have seen subsequent price increases. Santiment’s data reveals that Solana could soon benefit from this pattern, with a weighted score of -0.400815.