Solana is trading above a crucial support level at $137 after experiencing a 17% correction from local highs around $160. This recent dip has left analysts and investors on edge, awaiting confirmation of the next price direction.
Just last week, sentiment was strongly bullish, but the current market atmosphere is filled with fear and uncertainty. One notable analyst, Carl Runefelt, has shared a chart highlighting the risk of Solana losing its key support level, which could lead to further downside.
The entire crypto market is grappling with high volatility, amplifying uncertainty. This has led to growing fear among investors, many concerned about the potential for deeper corrections. While Solana showed strong momentum recently, the present market conditions have dampened optimism, leaving traders anxious for a clear signal that could reignite confidence.
As Solana continues to hover near this critical support level, the coming days will be pivotal in determining whether it can regain its bullish momentum or if further declines are on the horizon.
Solana Testing Crucial Demand Levels
Solana is at a critical juncture, as its price action has shifted from bullish to bearish in just a few days. Bulls are now proceeding with caution, especially below the $140 mark, which represents a key structural level.
The $137 support level is crucial, as it could be Solana’s last defense against a further drop. Top crypto analyst Carl Runefelt recently shared a technical analysis on X, highlighting the precarious situation Solana finds itself in. According to Runefelt, Solana could see a sharp drop to $128 if this support level breaks, extending the current consolidation phase.
In addition to the risk of a breakdown, Runefelt also pointed to key resistance levels that bulls need to target if Solana is to regain its upward momentum. The most important levels to watch are the $150 and $160 supply zones.
A break above these zones would be necessary to confirm a reversal into a bullish trend. Until then, the price action remains uncertain, and investors are closely monitoring these critical support and resistance levels.
The current market volatility and the threat of further declines are causing hesitation among traders. Solana’s ability to hold its support or break through resistance will determine its next move.
SOL Technical Analysis: Prices To Watch
Solana (SOL) is trading at $139 after a correction from local highs that haven’t been broken since July. The price faces significant resistance as it struggles to reclaim the 4-hour 200 moving average (MA) at $139.9, a critical strength indicator.
For bulls to regain momentum, holding above this level is essential. Additionally, the price must reclaim the 4-hour 200 exponential moving average (EMA) at $144.3 to confirm a bullish reversal and signal a potential recovery.
However, the market may see further downside pressure if Solana fails to surpass these crucial technical levels. A deeper correction could lower the price to $120, a key demand zone that could serve as a new level of support. This would extend the current consolidation phase and put more downward pressure on Solana’s price.
Investors are watching closely as SOL navigates this critical range, with both bulls and bears waiting for a decisive move in either direction.
Featured image from Dall-E, chart from TradingView