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Solana (SOL) faces significant risk as the broader cryptocurrency market bounces back from local declines, but SOL is struggling to break through the key $140 resistance level. This underperformance has raised concerns among investors, many of whom are worried about Solana’s inability to keep up with the recent market boom.
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Some analysts are even predicting a deep retracement to its annual low of around $78 if the price continues to retreat. Despite holding up well during the crash of Bitcoin and other altcoins, Solana’s current price action shows that the risk of a correction is increasing.
If SOL fails to break above $140 and go along with the market recovery, it may face a major downside. Although Solana has previously weathered market turmoil better than some of its peers, there is a growing belief that now is Solana’s turn for a big fall. Investors are keeping a close eye on the upcoming move.
Solana Struggles To Maintain Bullish Momentum
Solana (SOL) rallied more than 7% this week, while many other altcoins rallied, posting double-digit gains. This has raised concerns among investors, who fear that SOL may follow the same path that many altcoins have experienced in recent months.
One prominent analyst and former asset manager, Amdtrades, with more than 9 years of experience, shared a technical analysis of Solana’s price action, highlighting some price-related issues.
According to Amdtrades, Solana is at an important crossroads. If it fails to break through the $140 resistance level—the fundamental price point that once served as strong support—a deeper correction could follow. He mentioned that the first key level to watch is $115, which could cause further declines if breached.
After that, the SOL may drop to $100; in a worst-case scenario, it could drop to $78. If it drops to lower values, it will represent a 40% correction from current levels.
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The risk of Solana hitting these low numbers remains high, especially if it continues to struggle while other cryptocurrencies recover. However, Amdtrades also emphasized the potential for multiples.
If SOL breaks and holds above $140, it may trigger a recovery and reverse the negative trend. Investors are now closely watching these levels to see if Solana will experience a deeper pullback or find the strength to regain momentum.
SOL Price Levels to View
Solana (SOL) is currently trading at $130, a key level that could determine its next move. After testing the resistance of $ 140, the price faced a rejection of 7%, raising concerns among traders.
The $140 mark coincides with the 200-year moving average (EMA) of $139.26, a key technical indicator that had provided support since October last year but has now turned into resistance. This change created more pressure on the SOL bulls to regain control.
SOL should break above this EMA and re-seek the $140 level to pull back. If the bulls succeed, it will remove the negative market sentiment and could result in a strong 20% ​​rise to the next supply area around $163. However, failure to recover these levels can lead to an additional bearish effect.
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If the price continues to pull back and cannot cross the $140 mark, SOL may face a deep correction, possibly down 15% to $110.
Featured image from Dall-E, chart from TradingView