Solana (SOL) Technical Analysis: Key Turning Point Indicated by 600-Day Consolidation Range and Rising Wedge

600-Day Consolidation Pattern Reveals Solana’s Current Situation

Solana has been trading between two major milestones, $120 and $210, over the past 600 days. According to a recent chart analysis published by analyst Inmortal, the current market is near the middle of this long-term range, around the $160 level, and market participants seem to be uncertain about the direction.

A notable point is that after repeatedly hitting resistance at $210, the price has consistently pulled back to the mid-range each time. This indicates that the forces of buyers and sellers are in balance, and there is a lack of conviction about the overall trend. Long-term range formation typically signals market indecision or consolidation phases.

Downside Risk Indicated by Rising Wedge Formation

On November 11, Coinbase’s SOL/USD chart analysis confirmed that Solana is forming an ascending wedge pattern. This pattern is characterized by both the highs and lows rising, while the price range gradually narrows.

Currently, the market is testing the 50-period Exponential Moving Average (EMA) near $165, and trading volume remains lower than during the initial selling pressure. Rising wedges are often interpreted as bearish continuation signals, and if the price clearly breaks below the lower boundary of the wedge, a downside target of approximately 23% is suggested. This points to a potential decline from around $165 to the $127.2 level.

Importance of Support Levels and Future Outlook

The horizontal support level around $127.2, visible on the chart, aligns with the lower target of the rising wedge pattern and is considered a critical defensive line for future trading.

If the market closes below the $120 support level on a sustained basis, it would confirm a bearish breakdown. Conversely, a decisive breakout above $210 could signal a transition away from the two-year-long consolidation phase and the emergence of a new bullish momentum.

Currently, Solana stands at this crossroads, and the next significant price movement will likely heavily influence market participants’ decisions.