SOL Narrows Trading Range; Chart Points to Potential Breakout or Breakdown

**Key Point:** SOL’s narrowing price range suggests a potential for an expanded trading range in the coming days. The possibility of a significant upside breakout remains a key consideration, although bears remain firmly positioned around key support levels.

Fidelity Investments’ proposed Solana (SOL) exchange-traded fund application has encountered a delay. The U.S. Securities and Exchange Commission (SEC) recently requested public comments within a 21-day window and rebuttals within an additional 35 days.

Bloomberg ETF analyst James Seyffart indicated the delay was within expectations in a post on X. Furthermore, Seyffart noted that “interactions between the SEC and issuers/exchanges should be viewed positively.”

SOL Technical Analysis Suggests Continued Volatility

Technical analysis points to heightened sensitivity in the SOL/USDT pair. Solana experienced a pullback on Monday, rejected attempts to move decisively below its 50-day simple moving average at approximately $154.

However, a notable bullish factor is that buyers have not permitted the price to decline significantly, establishing a hold above the 20-day exponential moving average near $149. The increasingly narrow trading range, encompassing prices near $154 and $144 currently, signals elevated sensitivity and suggests the market is primed for a decisive move in the near term.

“Interactions between the SEC and issuers/exchanges should be viewed positively.” – James Seyffart, Bloomberg ETF Analyst

Technical scenarios diverge significantly from this point forward:

**Bullish Scenario:** A successful breach above the overhead resistance around $159 could trigger strong buying interest. This breakout would invalidate current bearish structures and unlock further upside potential. Initial resistance targets are seen around the $168 mark, with a longer-term objective near $185.

**Bearish Scenario:** Conversely, a breakdown below the $144 level could signal capitulation and renewed selling pressure. This could lead to a decline towards $137 and potentially extend to $130 if the bearish momentum continues.

The 4-hour timeframe reveals the formation of a bearish descending triangle pattern below $144. A breakdown and hold below this level could signal the pattern’s completion and initiate a corrective decline towards $137 and the pattern target near $129.

Alternatively, buyers could attempt to invalidate this bearish structure by pushing the price decisively above the surrounding downtrend line. Sustaining a close above the crucial $159 threshold would complete an inverse head-and-shoulders pattern, with a primary resistance target estimated at $192.