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Solana (SOL) faces significant risks as the broader crypto market recovers from its local lows, but SOL is struggling to clear the crucial resistance level at $140. This poor performance has raised concerns among investors, with many concerned that Solana will not be able to keep up with the recent market rally.
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Some analysts are even predicting a sharp pullback to a yearly low of around $78 if the price continues to lag. Despite holding up relatively well during previous crashes in Bitcoin and other altcoins, Solana’s current price action suggests that the risk of a correction is increasing.
If Solana fails to break above $140 and stay in line with the market recovery, it could face a steep decline. While Solana has weathered market turmoil better than some of its peers in the past, there is a growing belief that it is now Solana’s turn to see a major downside. Investors are keeping a close eye on the next moves.
Solana struggles to maintain upward momentum
Solana (SOL) has fallen more than 7% this week, while several other altcoins have surged, posting double-digit gains. This has raised concerns among investors, who fear that SOL could follow the same path that many altcoins have seen in recent months.
A prominent analyst and former asset manager, Amdtrades, with over 9 years of experience, shared, Technical analysis of Solana price movementhighlighting some worrying price targets.
According to Amdtrades, Solana stock is at a critical crossroads. If it fails to break the resistance level at $140 — a key price point that has previously served as strong support — a deep correction could follow. He noted that the first key level to watch is $115, which could lead to further declines if broken.
After that, SOL stock price may drop to $100; in the worst case scenario, it may drop to $78. If it drops to lower prices, it will represent a 40% correction from current levels.
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The risk of Solana hitting these lows remains high, especially if it continues to struggle while other cryptocurrencies recover. However, Amdtrades also stressed the possibility of a recovery.
If Solana can break the $140 level and hold above it, it could lead to a recovery in the stock and possibly reverse the negative trend. Investors are now watching these levels carefully to see if Solana will face a deeper decline or find the strength to regain momentum.
SOL Price Levels to Watch
Solana (SOL) stock is currently trading at $130, a crucial level that could determine its next move. After testing the $140 resistance level, the price faced a 7% rejection, which has raised concerns among traders.
The $140 level coincides with the 200-day exponential moving average (EMA) at $139.26, an important technical indicator that has provided support since October last year but has now turned into resistance. This reversal has created additional pressure on SOL bulls to regain control.
SOL must break this EMA and reclaim the $140 level to initiate a bullish reversal. If the bulls succeed, it will remove the negative sentiment in the market and will likely lead to a strong 20% rally towards the next supply zone around $163. However, failure to reclaim these levels could lead to a more bearish outcome.
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If the price continues to lag behind and fails to surpass the $140 level, SOL could face a deeper correction, with a potential 15% decline towards $110.
Featured image by Dall-E, chart by TradingView