Technical analysis by wolfchemist about Symbol SOL: Buy recommendation (1/17/2025)

Technical Analysis1. Descending ChannelThe price has been consolidating within the descending channel since November, consistently bouncing off the upper and lower boundaries.A breakout above the channel would signify a bullish reversal and a possible surge toward higher resistance levels, such as $220 and $240.2. Current MomentumThe price is near the upper boundary of the channel at $204. A successful breakout accompanied by strong volume would confirm a bullish move.3. Targets After BreakoutImmediate target $220 (previous support turned resistance).Extended target $240-$280, depending on momentum and news impact.News/Event Driven Catalysts:1. Solana ETF DecisionThe U.S. SEC decision on a Solana ETF within the next 8 days is a crucial factor. If approved, this would open the doors for institutional investment in Solana, significantly increasing demand and price.Historically, ETF approvals for assets have led to sharp price rallies, often breaking technical resistances.2. Trump’s Strategic Reserve PlansThe announcement that the U.S. President-elect is considering cryptocurrencies like Solana for a national reserve creates a bullish sentiment. If implemented, this could position Solana as a strategic asset in the crypto space, attracting major investors and long-term holders.3. Market Sentiment:Positive news about an altcoin reserve and Solana’s inclusion could further amplify its status as a leading blockchain in the market, pushing prices higher.Potential Scenarios1. Bullish Scenario (Breakout)If the SEC approves the Solana ETF and positive sentiment continues, the price is likely to break above the channel.Key levels to watch post-breakout: $220 (immediate resistance), $240, and $280.2. Bearish Scenario (Rejection)If the ETF is rejected or market sentiment turns negative, the price might face rejection at the upper boundary of the channel.Downside levels to watch: $180 (support within the channel) and $165 (channel bottom).This chart and the accompanying news strongly indicate that Solana is at a pivotal moment. Traders should monitor the channel breakout closely and pay attention to ETF-related news and market reactions. With the potential approval of the ETF and increasing institutional interest, Solana could experience a significant rally, making it a key asset to watch in the short term.