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Solana (SOL) faces significant risk as the broader cryptocurrency market rebounds from local lows, yet SOL struggles to break above the crucial $140 resistance level. This underperformance has raised concerns among investors, with many worried about Solana’s inability to keep up with the market’s recent surge.
Some analysts are even predicting a deep retrace to its yearly low of around $78 if the price continues to lag. Despite holding relatively well during Bitcoin’s and other altcoins’ earlier crashes, Solana’s current price action suggests that the risk of a correction is growing.
If SOL fails to break above $140 and align with the market’s recovery, it could face a steeper downturn. While Solana previously weathered market turbulence better than some of its peers, there’s a growing belief that now may be Solana’s turn to experience a significant fall. Investors are keeping a close eye on upcoming movements.
Solana Struggling To Keep Bullish Momentum
Solana (SOL) has retraced over 7% this week, while many other altcoins surged, posting double-digit gains. This raised concerns among investors, who fear SOL might follow the same trajectory many altcoins experienced in recent months.
One prominent analyst and former asset manager, Amdtrades, with over 9 years of experience, shared a technical analysis of Solana’s price action, highlighting some concerning price targets.
According to Amdtrades, Solana is at a crucial crossroads. If it fails to break past the $140 resistance level—a fundamental price point that once served as strong support—a deep correction could follow. He noted that the first key level to watch is $115, which could trigger further downside if breached.
After that, SOL could drop to $100; in a worst-case scenario, it may fall as low as $78. If it drops to the lower prices, it would represent a 40% correction from current levels.
The risk of Solana hitting these lows remains high, especially if it continues to struggle while other cryptocurrencies recover. However, Amdtrades also emphasized the potential for a rebound.
Should SOL break and hold above $140, it could spark a recovery and possibly reverse the negative trend. Investors are now carefully watching these levels to see if Solana will face a deeper pullback or find the strength to regain momentum.
SOL Price Levels To Watch
Solana (SOL) is currently trading at $130, a crucial level that could determine its next move. After testing the $140 resistance, the price faced a 7% rejection, raising concerns among traders.
The $140 mark coincides with the daily 200 exponential moving average (EMA) at $139.26, a significant technical indicator that had provided support since October last year but has now flipped to resistance. This reversal has created added pressure on SOL bulls to regain control.
SOL must break above this EMA and reclaim the $140 level for a bullish reversal. If bulls succeed, it would clear negative market sentiment and likely trigger an aggressive 20% surge toward the next supply zone around $163. However, failure to reclaim these levels could lead to a more bearish outcome.
If the price continues to lag and cannot break past the $140 mark, SOL could face a deeper correction, with the potential for a 15% drop toward $110.
Featured image from Dall-E, chart from TradingView