Solana is currently above a vital support threshold at $137 after undergoing a 17% correction from recent peaks around $160. This latest decline has put analysts and investors on high alert, as they await clarity on the next price trend.
Only a week ago, market sentiment leaned heavily towards bullishness, but the present situation is filled with apprehension and doubt. Notable analyst Carl Runefelt has shared a chart that underscores the risk of Solana breaching its essential support level, which could trigger further declines.
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The entire cryptocurrency market is experiencing significant volatility, escalating uncertainty. This has fostered increasing fear among investors, many of whom are wary of more pronounced corrections. Although Solana showed robust momentum recently, the current market conditions have tempered hopes, leaving traders eager for a definitive signal to restore their confidence.
As Solana remains near this pivotal support level, the upcoming days will be critical in determining whether it can reclaim its bullish trend or if it will face additional declines.
Solana Testing Vital Demand Levels
Solana finds itself at a crucial point, with its price action shifting from bullish to bearish within a matter of days. Bulls are now proceeding with caution, particularly beneath the $140 level, which is significant structurally.
The $137 support level holds great importance, as it may represent Solana’s last line of defense against further downturns. Leading crypto analyst Carl Runefelt recently posted a technical analysis on X, highlighting the precarious position that Solana is in. Runefelt suggests that if this support level gives way, Solana could plummet to $128, prolonging the current consolidation phase.
In addition to the risk of a breakdown, Runefelt also emphasized key resistance zones that bulls need to target to regain Solana’s upward trajectory. The most significant levels to monitor are the $150 and $160 supply zones.
A breakthrough above these areas would be essential to confirm a reversal into a bullish trend. Until then, price movements remain unpredictable, with investors closely watching these essential support and resistance levels.
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Current market volatility and the looming threat of further declines are causing traders to hesitate. Solana’s ability to maintain its support or break through resistance will dictate its next steps.
SOL Technical Analysis: Key Prices to Monitor
Solana (SOL) is priced at $139 after a correction from local highs that have remained unbroken since July. The price faces notable resistance as it attempts to reclaim the 4-hour 200 moving average (MA) at $139.9, a critical strength indicator.
For bulls to regain momentum, it is vital to remain above this level. Furthermore, the price must reclaim the 4-hour 200 exponential moving average (EMA) at $144.3 to confirm a bullish reversal and signal a possible recovery.
Conversely, if Solana cannot breach these crucial price levels, there could be further downside pressure. A more significant correction might drive the price down to $120, a key demand zone that could establish a new support level. This would prolong the current consolidation and exert additional downward pressure on Solana’s price.
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Investors are keeping a close eye on SOL as it navigates this crucial range, with both bulls and bears poised for a definitive move either way.
Featured image from Dall-E, chart from TradingView
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