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Solana is trading above the crucial support level at $137 after seeing a 17% retracement from local highs around $160. This recent decline has left analysts and investors nervous, waiting for confirmation of the next price direction.
Just last week, sentiment was strongly bullish, but the current market atmosphere is full of fear and uncertainty. One prominent analyst, Carl Rohnfelt, shared a chart highlighting the risk of Solana losing its key support level, which could lead to a further decline.
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The entire cryptocurrency market faces high volatility, which increases uncertainty. This has led to growing concerns among investors, with many expressing concern about the possibility of deeper corrections. While Solana has shown strong momentum recently, current market conditions have dampened optimism, leaving traders wary of 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 if he can regain his upward momentum or if more declines are on the horizon.
Solana tests critical demand levels
Solana is at a critical juncture, as the price action has turned from bullish to bearish in just a few days. The bulls are now moving cautiously, especially below $140, which is a key structural level.
The $137 support level is crucial, as it could be Solana’s last defense against further decline. The most famous cryptocurrency analyst, Karl Roenfeldt, recently Share technical analysis on XWhich highlights the precarious situation Solana finds himself in. According to Roenfelt, Solana may see a sharp drop to $128 if this support level is broken, extending the current consolidation phase.
In addition to the risk of a collapse, Roenfelt also pointed to key resistance levels that bulls need to target if Solana wants to regain his upward momentum. The most important levels to watch are the $150 and $160 supply areas.
A break above these areas will be necessary to confirm a reversal to the upside. Until then, price action remains uncertain, and investors are closely monitoring these important support and resistance levels.
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The current market volatility and the threat of further declines are causing hesitation among traders. Solana’s ability to hold the support level or break through the resistance will determine his next move.
SOL Technical Analysis: Prices to Watch
Solana (SOL) is trading at $139 after correcting from local highs that have not been broken since July. The price is facing significant resistance as it struggles to reclaim the 4-hour 200 moving average at $139.9, which is a crucial strength indicator.
For the bulls to regain momentum, holding above this level is essential. Additionally, the price must reclaim the 200 hourly exponential moving average (EMA) at $144.3 to confirm a bullish reversal and signal a possible recovery.
However, the market may see further downward pressure if Solana fails to cross these crucial technical levels. A deeper correction could take the price down to $120, a key demand area that could serve as a new level of support. This would extend the current consolidation phase and put further downward pressure on Solana’s price.
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Investors are watching closely as SOL moves in this critical range, with both bulls and bears waiting for a decisive move in either direction.
Featured image by Dall-E, chart from TradingView
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