Solana has been moving at an important resistance point that is closely watched by short-term traders in recent hours. As the price approaches the $84 level, there is a serious struggle between both buyers and sellers. This move, which attracts attention on the short-term chart, contains findings that indicate a much wider upward potential when looking at larger time frames.
The $84 band increases tension in the market
After the decline in the previous days, Solana recovered from the support between $ 78-81 and started to test the resistance zone around $ 84 again. Market watchers predict that the movement may gain momentum if this level is exceeded. Notably, according to analysis shared by MCO Global, the price is facing multiple closely spaced resistance levels located between $84.06 and $87.03. These resistances produced by the Fibonacci technical indicator indicate a difficult supply area and are not always easy to overcome on the first try.
On the downside, if the price falls below the $ 81.65 level, there may be a retreat towards the support area in the $ 77-78 band. There is a potential for buyers to re-engage in this region. However, if the price settles above $ 84 in a short time, the possibility of moving to the trend area in the $ 87-88 band with a new momentum becomes stronger.
“Many resistance levels are clustered very close on the chart. Therefore, it is not surprising that the upward breakout caused short-term fluctuations in the first attempts,” emphasizing the ongoing tightness in technical analysis.
Megaphone structure on the weekly chart: Signal of the big rise
Looking at the longer term, Solana has a technical indicator called the “megaphone”, or expanding triangle formation, on the weekly chart. In the evaluation made by market experts, it seems that the price has often touched the limits of this structure as it has fluctuated between both rising resistance and falling support recently. Such formations are generally considered as a sign of a search for a new direction after a long period of consolidation.
In the charts shared by analysts, it stands out that the price has the potential to break upward by gaining support from the lower band of this structure. If the current support area is maintained, the megaphone structure will remain intact, paving the way for a strong upward movement in the market.
In this expected breakout scenario, above $1,000 was pointed out as the target. However, in order to reach this level, the upper band of the megaphone formation must be exceeded and the net increase in transaction volume must be confirmed. Although this rise is currently considered only a prediction, investors are advised to carefully monitor the potential breakout of this formation in their trading strategies.
“If Solana manages to break away from this expanding structure and breaks the upper limit along with the volume, it will not be a surprise to see new highs,” the expectation for big price targets was revealed.
