Solana price showed encouraging signs of recovery, rising 6% on Friday to approach the $126 mark. This rebound follows a worrying dip below the crucial $120 level, which had raised fears of a possible downtrend that could drag the cryptocurrency towards the $100 threshold.
Solana Prize is gaining ground
Chris MacDonald, analyst at The Motley Fool, recently marked two key factors that contributed to Solana’s revival. An important catalyst is a proactive initiative by the Solana Foundation.
Bitcoinist reported earlier this week that the organization is currently assessing whether its network can withstand potential threats from quantum computing technologies.
In collaboration with Project Eleven, a security company specialized in post-quantum cryptography, the Solana team has launched a quantum-resistant testnet after an extensive threat analysis.
The second notable factor driving Solana’s price increase is the announcement from health and wellness company Mangoceuticals, which unveiled plans to spend $100 million to acquire and own SOL.
Despite the positive momentum, experts warn that Solana’s price is currently following a “clean correction structure.”
Moving averages indicate a downward trend
From a technical analysis perspective, the 50-day simple moving average (SMA) is around $143, significantly higher than the current trading range, while the 200-day SMA looms even further at around $170, indicating a prevailing downtrend rather than a healthy consolidation phase.
In the short term, the 20-day exponential moving average has also moved towards $133 and has consistently rejected previous attempts at recovery.
Analysts note that until Solana price can close above the low $130s for an extended period of time, any rebounds will likely be seen purely as counter-trend moves.
The immediate support is just below the current trading level around $125, followed by critical levels between $121 and $120, and another demand zone around $110.
A bigger downturn could push the price into the high $90s, with projections pointing to a potential dip to around $80 if liquidations accelerate further, as NewsBTC reported on Thursday.
The market has already registered an eight-month low near $116.9. A decisive close below that level could likely drag Solana price towards the psychologically significant $100 mark.
On the upside, Solana price could encounter initial resistance clustered in the $133-$138 range, with stronger resistance seen at higher levels between $144 and $147, which could prevent any new recovery in the short term.
For further price recovery to occur, Solana price will need to clear that second group of resistance levels at a daily close, ideally supported by increased trading volume, to pave the way for prices between $160 and $165.
Featured image of DALL-E, chart from TradingView.com