Solana is trading above a crucial support level of $137 after experiencing a 17% correction from local highs around $160. This recent drop has left analysts and investors nervous, awaiting confirmation of the next price direction.
Last week, sentiment was strongly bullish, but the current market atmosphere is filled with fear and uncertainty. A prominent analyst, Carl Runefelt, has shared a chart highlighting the risk of Solana losing its key support level, which could lead to further declines.
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The entire cryptocurrency market is dealing with high volatility, which amplifies uncertainty. This has sparked growing fear among investors, with many worried about the possibility of deeper corrections. While Solana showed strong momentum recentlyCurrent market conditions have dampened optimism, leaving traders eager for a clear signal that could revive confidence.
As Solana continues to hover around this critical support level, the next few days will be critical in determining whether it can regain its bullish momentum or if further declines are on the horizon.
Solana tests crucial demand levels
Solana is at a critical moment, as the price action has gone from bullish to bearish in just a few days. The bulls are now acting cautiously, especially 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 a further decline. Top crypto analyst Carl Runefelt recently shared a technical analysis on Xhighlighting the precarious situation in which Solana finds itself. According to Runefelt, Solana could see a sharp drop to $128 if this support level is broken, extending the current consolidation phase.
In addition to the breakout risk, Runefelt also pointed out key resistance levels that the bulls must target if Solana wants to regain its bullish momentum. The most important levels to watch out for are the $150 and $160 offer zones.
A break above these zones would be necessary to confirm a reversal to an uptrend. 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 doubts among traders. Solana’s ability to maintain its support or overcome resistance will determine its next move.
SOL Technical Analysis: Prices to Watch
Solana (SOL) is trading at $139 after a correction from local highs that have not been 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 the bulls to regain momentum, it is essential to stay above this level. Furthermore, the price must reclaim the 4-hour 200 EMA at $144.3 to confirm a bullish reversal and signal a possible recovery.
However, the market may come under further downward pressure if Solana fails to break above these crucial technical levels. A deeper correction could bring 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 watching closely as SOL navigates this critical range, with both bulls and bears expecting a decisive move in either direction.
Featured image of Dall-E, TradingView chart
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