Solana (SOL) is facing considerable challenges as the overall cryptocurrency market begins to recover from recent lows, yet SOL is struggling to surpass the pivotal $140 resistance level. This underachievement has sparked concerns among investors, many of whom are anxious about Solana’s failure to keep pace with the market’s recent gains.
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Certain analysts are even forecasting a significant retracement to its yearly low of approximately $78 if SOL continues to lag behind. While Solana managed to hold its ground during earlier downturns of Bitcoin and other altcoins, its current price movements indicate an increasing risk of a correction.
If SOL fails to break past the $140 mark and align with the market’s recovery, it could endure a sharper decline. Although Solana has previously navigated market volatility better than several of its counterparts, there is a growing sentiment that it may soon face a substantial drop. Investors are closely monitoring forthcoming movements.
Solana Struggling To Maintain Bullish Momentum
Solana (SOL) has declined over 7% this week, in contrast to many other altcoins that surged with double-digit gains. This has raised alarms among investors, who worry that SOL might follow the same downward path that many altcoins have taken in recent months.
A distinguished analyst and former asset manager, Amdtrades, who has over 9 years of experience, shared a technical analysis of Solana’s price action, shedding light on some alarming price targets.
According to Amdtrades, Solana is at a pivotal moment. If it cannot surpass the $140 resistance level—a key price point that previously provided robust support—a significant correction could ensue. He pointed out that the first critical level to monitor is $115, which could catalyze further downward movement if breached.
If this occurs, SOL could decline to $100; in a worst-case scenario, it may plunge as low as $78. Dropping to these lower levels would signify a 40% correction from its current price.
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The potential for Solana to reach these lows remains elevated, particularly if it continues to lag while other cryptocurrencies rebound. However, Amdtrades also underscored the possibility of a recovery.
If SOL breaks and maintains a position above $140, it could prompt a recovery and possibly reverse the current negative trend. Investors are attentively watching these levels to determine whether Solana will endure a deeper pullback or find the strength to regain upward momentum.
SOL Price Levels To Monitor
Solana (SOL) is currently priced at $130, a critical threshold that could dictate its next steps. After testing the $140 resistance, the price encountered a 7% rejection, escalating concerns among traders.
The $140 level aligns with the daily 200 exponential moving average (EMA) at $139.26, a significant technical indicator that has provided support since October of last year but has now switched to act as resistance. This change has intensified the pressure on SOL bulls to regain dominance.
SOL must overcome this EMA and reclaim the $140 position for a bullish reversal. Should bulls succeed, it would alleviate negative market sentiment and potentially trigger a strong 20% surge towards the next supply zone around $163. Conversely, failing to reclaim these levels could result in a more bearish scenario.
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If the price continues to stagnate and cannot surpass the $140 threshold, SOL may experience a deeper correction, with the possibility of a 15% drop towards $110.
Featured image from Dall-E, chart from TradingView
