- Solana trades near key wedge support with Ichimoku Cloud resistance limiting any near-term bullish breakout confirmation.
- A decisive move above $180 and the falling wedge pattern may signal the start of a broader bullish trend reversal.
- Failure to hold current levels could trigger a bearish breakdown, targeting the $165–$170 zone amid market weakness.
According to the prices as of writing, Solana (SOL) is trading around a falling wedge pattern: around the resistance of 180, and the negative factor is the Ichimoku Cloud. Also, buyer and seller action in this area can spell out whether there is a bullish reversal or bearish breakdown.
Solana Trades Within Falling Wedge Pattern
Solana has been trading in the falling wedge pattern where it has been experiencing series of lower highs and lower lows since mid-July. This chart pattern can usually be considered to be a possibility of bullish reversal as long as the price is violated with certain conviction above the upper trendline.
At the time of writing, SOL trades at $168.75 after briefly dropping below the wedge support, a move quickly rejected by the market. This wick indicates liquidity gathering before a potential reversal. If the price sustains above this lower boundary with increased volume, it may mark the beginning of upward momentum.
Ichimoku Cloud Remains a Barrier to Upside
The Ichimoku Cloud sits directly above the current price, acting as a resistance ceiling and reflecting bearish sentiment. For a bullish trend to be confirmed, SOL must break both the wedge and the red zone of the Ichimoku Cloud.
A daily candle close above the wedge and cloud could validate a move toward the $195–$200 range, matching the wedge’s height projection. However, without this breakout, bearish control may persist, keeping the asset under selling pressure.
What Traders Should Monitor Moving Forward
A tweet by The Crypto Express pointed out the technical confluence of the wedge and Ichimoku Cloud as a critical decision point. A bullish breakout remains the more probable scenario if volume spikes alongside price recovery.
If SOL fails to reclaim key levels, it could invalidate the pattern, with downside targets between $165 and $170. Market participants should watch price interaction with the wedge’s upper boundary and monitor the cloud’s density for breakout confirmation.
Traders should remain alert to any volume-driven move in the coming sessions, as the current pattern nears its apex.
