Solana (SOL) has seen a 12% retracement from Monday’s highs, falling to key territory in the past 24 hours. Some analysts remain bullish before Trump’s suspension, while others have warned that cryptocurrency’s bullish momentum could be at risk if the current levels are lost.
Solana Holds a Key Support Area
Amid the market recovery, Solana also lost its New Year’s high, falling to its lowest price since late December. On Monday, SOL registered a 17.3% increase from its yearly open after retesting the $220 mark.
However, its bullish momentum was halted after the price of Bitcoin fell by almost 8% in 24 hours. After hovering between the princely zone of $190-$199, Solana dropped below the low range, dropping to the current low of $182 on Thursday.
In the last 24 hours, the cryptocurrency jumped above the $190 range before sinking to the $185 support area again. The crypto investor indicated that, despite the recent decline, Solana still holds the target price of $325, as it did not fall from the previous $175.
The investor suggested that “since the downtrend is sharp, the uptrend may be sharp as well,” adding that “a V-shaped rebound may occur. The price target may be reached sooner than the time shown in that pattern.”
The Crypto General trader noted that SOL tested the previous exit level during a “much-needed correction.” Before the post-election pump, the $180-$185 area served as a key resistance level, which was later broken when Solana rose above $200.
In addition, this level was also tested as support during the retracement at the end of December, which served as an explosion point for the cryptocurrency. Crypto General suggested that the next few days will be “very positive for the market,” citing the upcoming inauguration of Trump as a possible reason.
With Trump sworn in, the markets are expected to start a parabolic season, taking the sol with them. My goal is around $285.
Analyst Warns of These SOL Levels
Crypto analyst Ali Martinez warned investors about the current levels of SOL, saying that the cryptocurrency “must not break below $180.” A possible drop below this support area could send Solana down 20% to 30%.
Martinez said the $150 to $130 range, which has not been seen since September and October, will be “the target.” Similarly, analyst Jelle recently said “It will be worth keeping an eye on SOL/BTC in the coming weeks.”
According to the post, the SOL trade against Bitcoin was at a critical point, suggesting that Solana should recover the 0.0022 level soon to continue its bullish momentum, as it currently sits at 0.0020.
Meanwhile, one market watcher noted that SOL’s performance during Q1 may be dampened due to “over-saturation, cooling pump-exciting metas, and the upcoming opening of FTX SOL that was sold in the past and has started to open, which is very large.” The opening is coming in March.”
However, he observes that “from Q2 onwards,” Solana will be a “big winner” due to the possible launch of Solana-based exchange-traded funds (ETFs) and the “potential availability of new Pump.fun metas” to dominate its bull case. . Based on this, the analyst predicts that SOL can hit $400-$500 this year.
As of this writing, Solana is trading at $191, a 3.3% increase in the daily time frame.