Solana (SOL) faces significant risk as the broader cryptocurrency market recovers from local lows, but SOL is struggling to break above the crucial $140 resistance level. This underperformance has raised concerns among investors, with many worried about Solana’s inability to keep up with the recent market surge.
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Some analysts are even predicting a deep pullback to its yearly low of around $78 if the price continues to lag. Despite holding up relatively well during previous dips in Bitcoin and other altcoins, Solana’s current price action suggests that the risk of a correction is increasing.
If SUN If Solana fails to break above $140 and align with the market recovery, it could face a steeper downturn. While Solana has previously weathered market turmoil better than some of its peers, there is a growing belief that it could now be Solana’s turn to suffer a significant decline. Investors are keeping a close eye on its next moves.
Solana struggling to maintain bullish momentum
Solana (SOL) has fallen more than 7% this week, while many other altcoins have surged, posting double-digit gains. This has raised concerns among investors, who fear that SOL could follow the same trajectory that many altcoins have experienced in recent months.
A prominent analyst and former asset manager, Amdtrades, with over 9 years of experience, shared a Solana Price Action Technical Analysishighlighting some worrying price targets.
According to Amdtrades, Solana is at a crucial crossroads. If it fails to break above the $140 resistance level — a key price point that has previously served as strong support — a deep correction could occur. He noted that the first key level to watch is $115, which could trigger even more losses if breached.
After that, SOL could drop to $100; in the worst case scenario, it could drop to $78. If it drops to lower prices, it would represent a 40% correction from current levels.
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The risk of Solana hitting these lows remains high, especially if it continues to struggle while other cryptocurrencies recover. However, Amdtrades also emphasized the potential for recovery.
If SOL breaks and sustains above $140, it could trigger a recovery and possibly reverse the downtrend. Investors are now closely watching these levels to see whether Solana will face a deeper pullback or find the strength to regain momentum.
SOL Price Levels to Watch
Solana (SOL) is currently trading at $130, a crucial level that could determine its next move. After testing the $140 resistance, the price faced a 7% rejection, raising concerns among traders.
The $140 mark coincides with the 200 daily exponential moving average (EMA) of $139.26, a significant technical indicator that has provided support since October last year but has now flipped to resistance. This reversal has created additional pressure on SOL bulls to regain control.
SOL must break above this EMA and reclaim the $140 level for a bullish reversal. If the bulls succeed, it would eliminate the negative market sentiment and likely trigger an aggressive 20% rally towards the next supply zone around $163. However, failure to reclaim these levels could lead to a more bearish outcome.
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If the price continues to lag and fails to break above the $140 mark, SOL could face a deeper correction, with the potential for a 15% drop towards $110.
Featured image of Dall-E, chart from TradingView
