Solana's Slippery Slope: Key Support Lost, Analysts Divided on Next Move Solana (SOL) has recently hit a critical juncture, with its price plummeting 8% and breaching a crucial support level for the first time in months. This downturn has prompted a mixed reaction from market analysts, some seeing it as a natural correction, while others warn of a potentially deeper collapse if key price points continue to erode.
Market Pullback and Critical Support Breakdown
Solana recorded an 8.3% drop on Monday, falling below the lower boundary of its three-month trading range. Following a strong August breakout, SOL had previously traded between $175 and $250, peaking at a multi-month high of $253 in September. Since that peak, the altcoin has retreated nearly 35%, consistently failing to reclaim the $200 psychological barrier despite multiple attempts. While the $170-$180 range has historically acted as a reliable support, recent market volatility, influenced by Bitcoin's pullback to $107,000, has driven Solana to a new local low of $165. This performance has led some analysts to suggest that a major correction for SOL might be far from over.
Analyst Outlooks: Bears Eye Further Declines, Bulls Seek Reversal
Analyst Ali Martinez highlighted Solana's broader macro range between $100 and $260. He emphasized the importance of SOL reclaiming $200 to demonstrate strength and target the upper end of its range. Martinez had previously indicated that a confirmed breakdown from the $180 level would signal further losses. According to his charts, the next significant support lies around $158. This $158 level represents the mid-zone of the macro range and previously served as a critical support and resistance point during Q3 and last November’s breakout. Martinez warned that if Solana fails to rebound from current levels and reclaim $180, it could face a severe 30% pullback, potentially dropping to $115. Conversely, analyst DonAlt suggested maintaining a bearish bias between current levels and $210. He would only flip aggressively bullish if SOL managed to overcome the $210 resistance.
Long-Term Bullish Sentiment Amidst Short-Term Headwinds
Despite the immediate bearish forecasts, some market participants remain optimistic about Solana's long-term trajectory. Trader Elite Crypto described Solana's recent pullback as a "healthy correction" after several months of upward movement. He noted that the cryptocurrency is still holding a major ascending support zone that has been in place since 2023. Elite Crypto anticipates that Solana's price will retest the $158 area before embarking on its next upward leg. He affirmed, "Overall, I am still bullish on SOL." Adding to the bullish long-term outlook, Bitwise CEO Hunter Horsley pointed to the recent launch of their Solana Staked Exchange-Traded Fund (ETF). This ETF has created a significant gateway for many investors to access Solana. The second wave of crypto-based ETFs saw the SOL-based product attract an impressive $400 million in inflows during its first four days of trading. Bloomberg analyst Eric Balchunas confirmed that this made it a leader among all crypto ETPs in weekly flows. Horsley emphasized that "ETF investors tend to be long term oriented," indicating a continued bullish performance for the cryptocurrency in the future, regardless of its current price action. As of the article's publication, SOL was trading at $167, reflecting a 17% decline within the weekly timeframe.
