Upward Trend, Breakout, and Potential Challenges Ahead

Following a significant response around the $14 support level, Solana experienced a consecutive four-week upward trend, resulting in a price increase until reaching the recent peak of the downward trend on the daily timeframe, which stood at approximately $22. This breach of the resistance level indicates a potential bullish mid-term trend for Solana. However, it is important to consider that the dynamic resistance posed by the descending channel's ceiling within the current range may trigger a negative price reaction. Solana's upward trajectory has been gradual, and it has currently retraced to its support level around $20.5. It is worth noting that the price is now positioned between the channel's ceiling and this support level. The steepness of the price's approach to this support indicates a heightened possibility of a further reduction in Solana's price if selling pressure intensifies, potentially breaking through this area and reaching the $19 support level. Conversely, if Solana reacts positively to the support, the next target for SOL would be approximately $22.50.