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Solana price remains anchored above the $200 mark as the token consolidates inside a well-defined falling wedge. Technical confluence around this level — including the 0.618 Fibonacci retracement and the Point of Control (POC) — creates a strong support zone that could act as the launchpad for a bullish reversal. With Solana recently outpacing Ethereum in annual on-chain revenue ($2.85 billion), on-chain fundamentals add weight to the bullish technical setup.
Why $200 matters
The $200 level is more than a round number; it coincides with the 0.618 Fibonacci retracement of the last swing and the POC, the price area with the heaviest traded volume. That overlap forms a liquidity pocket buyers can defend. In a market where liquidity and order flow drive breakouts, this confluence can determine whether SOL resumes its uptrend or slips into deeper consolidation.
Falling wedge: bullish setup
The current chart shows SOL compressing inside a falling wedge — a pattern often seen as a bullish continuation signal when it forms after a prior upmove. As the wedge narrows toward the $200 apex, traders will watch for an upside breakout confirmed by a decisive daily close above the upper trendline and a rise in trading volume.
SOLUSDT (4H) Chart
Targets and volume confirmation
If buyers successfully defend $200 and drive a breakout, the near-term target is $240, which aligns with the recent range high and initial resistance band. A sustained breakout with expanding volume could accelerate momentum toward $260 and beyond. Conversely, failure to hold daily closes above $200 would invalidate the bullish bias and increase the risk of a deeper pullback.
Trading plan and risk management
- Watch for daily candle closes above the wedge’s upper trendline and rising volume for breakout confirmation.
- Primary short-term target: $240. Secondary extension: $260+ if momentum persists.
- Stop-loss placement should respect individual risk tolerance; a close below $200 on higher timeframes would warn of a breakdown.
Conclusion
As long as Solana remains above the $200 support pocket — reinforced by the 0.618 Fibonacci and the POC — the technical bias favors bulls and a potential breakout from the falling wedge. Volume is the key confirming indicator: without it, breakouts are prone to failure. Keep an eye on SOL price action, on-chain revenue trends, and key resistance around $240–$260 for signs of sustained upside moves in this leading blockchain asset.
Source: crypto
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