Solana (SOL) is leading the crypto market’s recovery after Monday’s massive drop. SOL posted some of the biggest gains after reclaiming the $140 support zone on Tuesday morning. Its strength was highlighted by several market observers, who shared their bullish predictions for the token. However, one analyst has warned investors about an important level to watch.
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Solana leads market recovery
How the crypto market recoverSolana has seen a massive 30% jump from its all-time low of $110 recorded on Monday. This performance crowned SOL as the biggest gainer among the top 10 cryptocurrencies by market cap, outperforming the recovery of Bitcoin (BTC) and Ethereum (ETH).
Pseudonymous trader Glitch Capital compared BTC, ETH and SOL charts, considering Solana by far the “prettiest of the three”. For the trader, SOL “hit lows all the way to the $120 support and held up well” compared to the two largest cryptocurrencies.
According to the post, the token is testing its M15 trendline as resistance, which could give SOL a decent boost” if it manages to flip this trendline into support. Similarly, trader Eugene Ng Ah Sio praise the token’s performance. “One thing worth noting is the absolutely monstrous strength that $SOL shows, come rain or shine,” the trader said in a post X.
Based on the chart, the trader believes it is “virtually certain” that the cryptocurrency will hit a new all-time high (ATH) “at some point” during this cycle as “there are simply more buyers than sellers.”
Crypto Jelle, market analyst and investor, has reaffirmed his SOL prediction as the token “still holds the key support area and the weekly candle is green.” In a previous analysis, Jelle stated that Solana looked “ripe for further upside.” Jelle predicts the token will reach a new ATH during Q4 2024 and sets a price target of $600 for this cycle.
SOL price may suffer another 10-15% drop
Despite the bullish sentiment, Ali Martinez revealed that SOL’s TD Sequential indicator showed a sell signal on the hourly chart. This signal suggested that the token could potentially lose the $140 support zone, which has been tested throughout the day.
Failure to hold this support level could trigger a pullback to the $135-$130 price range. According to the analyst, Solana could find some relief at the $146 mark as “breaking the risk line (…) would invalidate this signal.” Furthermore, reclaiming this level could “potentially take SOL to the $150-$166 resistance levels.”
Altcoin Sherpa believe Investors have a good accumulation range between the $125-$150 price points. For him, Solana continues to be one of the best performing companies in the bull run and will be “one of the best retail chains of this cycle.”
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Additionally, Sherpa highlighted SOL’s “strong reactions today” but predicted another to tear down to the $125 mark soon. “I still think you’ll get another shot at $125 or lower in a few weeks, personally,” the analyst said. At the time of writing, Solana was trading at $148, up 10% in the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com