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The analyst says Solana is stuck between support at $110 and resistance at $120 as it trades in a rangebound state.
In his latest YouTube video on Dec. 26, the analyst behind the popular Cilinix Crypto channel shared his thoughts on recent price action in the Solana (SOL) market. He believes the altcoin remains fundamentally strong, but traders should remain patient amid questionable year-end trading conditions.
Speaking to his viewers, the analyst said Solana is currently rangebound between support at $110 and resistance around $120. Yesterday, Solana briefly broke above $120 but failed to hold those gains. According to the analyst, this kind of fake out is not uncommon, given lower liquidity and irregular trading activity around the holidays.
A fake out does not necessarily mean that weâre going to crash. [âŚ] Solana right now is still doing great.
Cillinix Crypto
The analyst also pointed to healthy trading volumes and open interest in Solana futures contracts as signs of ongoing strength. Looking ahead, he thinks Solana will likely see a bullish breakout above $120 or a bearish breakdown below $110 soon. He believes a drop towards $95 is possible if Bitcoin (BTC) fails to hold above $42,000. However, he says either scenario fits a longer-term bullish trajectory for Solana.
âFundamentally, Solana is still very bullish,â he concluded, advising traders to wait patiently for a definitive breakout in either direction.
Despite recent volatility, he remains optimistic about Solana overall, citing strong on-chain activity and developer participation. But he cautions traders to consider reducing risk ahead of potential near-term downside before a longer-term move higher.
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