As the crypto market recovers, Solana (SOL) has risen from a high-level trendline and temporarily regained a key horizontal level. Some analysts have indicated that a retest of crucial resistance could occur in the near term, while others have warned that a break to new lows remains possible.
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Solana bounces off two-year trend line
On Friday, Solana rose 10.3%, breaking the $85 area for the first time in three days. The cryptocurrency has fluctuated between $78-$88 over the past week and briefly dropped to $67 during last Thursday’s correction.
SOL lost the middle zone of its local range after recent market volatility, falling below $80 on Thursday. However, today’s recovery has taken the altcop above these recently lost levels, paving the way for a possible recovery.
Amid this crackdown, market observer Daan said Crypto Trades marked that the cryptocurrency has reclaimed the key $80 level, which has historically served as major resistance and support.
For the trader, the Solana must hold above this area and form a base above it before “looking for a near-term market structure to turn bullish again.” Analyst Ali Martinez noted that continued buying pressure could push SOL’s price toward the $88 level, which hasn’t been seen since the beginning of the week.
Since last week’s collapse, the altcoin has failed to rise above this level, making it a key short-term resistance area. A breakout from this level could open the door for a retest of the $90-$96 zone, where the April 2025 lows lie.
Meanwhile, Crypto Batman noted that Solana is retesting its two-year descending trendline in the weekly time frame, located around the recent lows. The chart shows that the macro trendline has been holding since early 2024 and has been tapped multiple times throughout the cycle.
As the analyst explained, “Over the past two years, every time the price reached this level, there has been a huge reversal.” During this period, it also marked the bottom of every major correction, with the last retest occurring in the second quarter of 2025 and leading to a rally the following quarter.
SOL failure still coming?
Despite the bullish outlook, other market watchers have shared potential bearish predictions for Solana if momentum weakens. Altcoin sherpa warned that SOL could drop to $50 if selling pressure pushes the price below a crucial area.
The chart shows that after the loss of the 200-week Exponential Moving Average (EMA), around $121, and the April 2025 lows, the most important area to hold is the recently visited local lows.
As the analyst pointed out, if the cryptocurrency fails to hold the $77-$78 price area, the next major historical support will be near the November 2023 breakout area around $51.
Market watcher Crypto Bullet suggested that Solana’s bottom may not have been reached yet, arguing that “those who bought BTC above $80,000 and SOL above $120 should be stuck for a year or two.”
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He confirmed that “there is no point in returning to those levels anytime soon” as cryptocurrencies are in their markdown period.
In an
At the time of writing, Solana is trading at $84.17, down 2.5% in the weekly time frame
Featured image from Unsplash.com, chart from TradingView.com