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In a recent technical analysis shared by X, crypto analyst Scott Melker, also known as The Wolf Of All Streets, highlighted a crucial support-resistance setup for Solana (SOL). He emphasized a successful bounce off the $112 support level, indicating a potential double bottom formation with a breakout above $147 to confirm. Melker cautioned against prematurely labeling it as a double bottom until the breakout occurs and advised watching the defined resistance closely.
The analyst’s chart illustrated SOL bouncing near $112, reinforcing it as a significant short-term support level. For the double-bottom pattern to be confirmed, Melker pointed out the need for a breakout above the downtrend line, currently around $130, followed by breaching the $147 resistance level. Until these conditions are met, he recommended exercising caution.
Solana Bottom In?
These observations come following significant unlocks. According to a post by on-chain intelligence firm Arkham, a substantial amount of SOL is set to unlock, generating discussions on social media about the potential impact.
Another trader, NooNe0x, expressed optimism about the situation, noting that the largest unlock was expected to occur soon. This could alleviate the supply pressure from locked tokens, leading to a more stable market environment.
Historically, token unlock events have been anticipated by traders, who may adjust their positions ahead of time. The market dynamics around unlock periods can be volatile, but the outcome depends on various factors, including actual selling pressure and overall market sentiment.
Awawat, a trader and angel investor, raised concerns about Solana’s current position despite holding above $100. He highlighted the significance of the upcoming unlock and its potential impact on SOL’s price.
Currently, SOL is trading at $115.
Image credit: Shutterstock, chart credit: TradingView.com