Solana Faces Critical Juncture: Will $150 Be The Next Target?
After a challenging week that saw it hit a one-month low, Solana (SOL) is at a pivotal moment. The cryptocurrency has bounced from a crucial support zone and is now battling to reclaim a significant psychological barrier. However, analysts warn that persistent market volatility could push SOL to retest lows not seen since July, potentially dropping to $150 if key support fails.
Market Volatility and Crucial Support Breaches
Solana recently lost the $200 price level as support, marking its first daily close below this threshold in nearly a month. This comes after a period of trading largely within the $120-$220 range since early February, with a brief breakout in mid-September. Just a week prior, strong bullish momentum and corporate treasury acquisitions had propelled SOL to an eight-month high of $253, fueling investor hopes for a sustained rally. However, a broader market pullback this week has affected major cryptocurrencies, with Bitcoin and Ethereum also experiencing significant drops. Solana has mirrored this trend, recording a 20% decline on the weekly chart. Analysts like Sjuuul from AltCryptoGems describe SOL's position as "in freefall" if it fails to maintain the $190-$200 range, suggesting that finding strong support above the $150 demand zone would be "very difficult." Market watcher Wise Crypto echoes this sentiment, viewing Solana's current retest of a critical support zone as a "make-or-break" scenario amidst overall market weakness.
Glimmers of Hope and Key Resistance Levels
Despite the bearish warnings, some indicators suggest a potential rebound. Wise Crypto points to oversold conditions signaled by the Stochastic RSI, hinting that a bounce could be on the horizon. If Solana can successfully hold its current support area, a push towards the $250 barrier might be next. Crypto Batman also highlights Solana's historical tendency to rebound from its major ascending trendline upon retesting it, advocating for a "different perspective" amidst market chaos. Notably, SOL showed resilience on Friday morning, bouncing from recent lows and making an attempt to break above the critical $200 psychological barrier. For this recovery to solidify, the cryptocurrency needs a daily close above $200 and continued stability over the weekend. This would transform the recent pullback into a mere downside deviation on the weekly timeframe, setting the stage for a potential move towards the $208-$210 range (near the 10-day Moving Average) and eventually $216-$220 (near the 30-day MA). As of writing, SOL is trading around $199, reflecting a 1.4% daily increase.
