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Solana is trading above a crucial support level at $137 after seeing a 17% correction from local highs around $160. This recent decline has left analysts and investors on edge, awaiting confirmation of the next price direction.
As recently as last week, sentiment was strongly bullish, but the current market atmosphere is one of fear and uncertainty. Notable analyst Carl Runefelt shared a chart highlighting the risk of Solana losing its key support level, which could lead to further decline.
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The entire crypto market is grappling with high volatility, amplifying uncertainty. This has sparked growing fear among investors, many of whom worry 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 inch closer to this critical support level, the next few days will be crucial in determining whether it can regain its bullish momentum or if further declines are on the horizon.
Solana tests crucial demand levels
Solana finds itself at a critical juncture as its price action has gone from bullish to bearish in just a few days. The bulls are now moving cautiously, particularly below the $140 mark, which represents a key structural level.
The $137 support level is crucial, as it could be Solana’s last defense against further decline. Leading crypto analyst Carl Runefelt recently shared technical analysis on X, highlighting the precarious situation Solana finds itself in. 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 breakdown, Runefelt also highlighted key resistance levels that bulls need to target if Solana is to regain its bullish momentum. The most important levels to watch are the $150 and $160 supply zones.
A break above these zones would be necessary to confirm a reversal of the bullish trend. Until then, price action remains uncertain and investors are closely monitoring these critical support and resistance levels.
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The 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 its next move.
SOL technical analysis: price to watch
Solana (SOL) is trading at $139 after a correction from local highs that have not been breached since July. Price is facing significant resistance as it struggles to reclaim the 4-hour moving average (MA) 200 at $139.9, a critical strength indicator.
For bulls to regain momentum, it is essential to stay above this level. Additionally, price must reclaim the 4-hour 200 exponential moving average (EMA) at $144.3 to confirm a bullish reversal and signal a potential recovery.
However, the market could face further downward pressure if Solana fails to break above these crucial technical levels. A deeper correction could send the price lower to $120, a key demand zone that could serve as a new support level. This would prolong the current consolidation phase and put more downward pressure on Solana’s price.
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Investors are closely monitoring SOL’s path through this critical range, with both bulls and bears awaiting a decisive move in either direction.
Featured image of Dall-E, chart by TradingView
