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Solana is trading above a crucial support level at USD 137, following a 17% correction from local highs around USD 160. This recent dip has analysts and investors on edge, waiting for confirmation of the next price direction.
Last week sentiment was still strongly bullish, but the current market atmosphere is filled with fear and uncertainty. A notable analyst, Carl Runefelt, has shared a chart highlighting the risk of Solana losing its key support level, which could lead to further downside.
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The entire crypto market is experiencing high volatility, which increases uncertainty. This has led to growing fear among investors, with many concerned about the possibility of deeper corrections. Although Solana has shown strong momentum recently, current market conditions have dampened optimism, leaving traders eager for a clear signal that could revive confidence.
As Solana continues to hover near this critical support level, the coming days will be crucial in determining whether it can regain its bullish momentum or whether further declines lie ahead.
Solana tests crucial demand levels
Solana is at a critical juncture as the price action has shifted from bullish to bearish in just a few days. Bulls are now moving cautiously, especially below the $140 mark, which represents an important structural level.
The $137 support level is crucial as it could be Solana’s last defense against a further decline. Top crypto analyst Carl Runefelt recently shared a technical analysis on XThis underlines the precarious situation in which Solana finds herself. According to Runefelt, Solana could see a sharp decline to $128 if this support level breaks, extending the current consolidation phase.
In addition to the risk of a collapse, Runefelt also pointed out key resistance levels that bulls should target if Solana is to regain its upward momentum. The key levels to watch are the USD 150 and USD 160 supply zones.
A break above these zones would be necessary to confirm a reversal to a bullish trend. Until then, price action remains uncertain, and investors are keeping a close eye on these critical support and resistance levels.
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Current market volatility and the threat of further declines are causing hesitation among traders. Solana’s ability to hold support or break through resistance will determine her next move.
SOL technical analysis: prices to watch
Solana (SOL) is trading at $139 after correcting local highs not broken since July. The price is facing significant resistance as it struggles to reclaim the 4-hour 200 moving average (MA) at $139.9, a critical strength indicator.
For bulls to regain momentum, it is essential that they remain above this level. Additionally, the price needs to reclaim the 4-hour 200 exponential moving average (EMA) at $144.3 to confirm a bullish reversal and signal a possible recovery.
However, the market could experience even more downward pressure if Solana fails to surpass these crucial technical levels. A deeper correction could push the price down to $120, a key demand zone that could serve as a new support level. This would extend the current consolidation phase and put more downward pressure on Solana’s price.
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Investors are closely watching how SOL moves through this critical range, with both bulls and bears waiting for a decisive move in either direction.
Featured image of Dall-E, chart from TradingView
