Can Solana Hold Support or Plunge Below $140 Amid Market Volatility?
Amid increasing market volatility, there are concerns about whether Solana (SOL) can maintain support or experience a plunge below $140. On the one-hour chart, Solana has shown signs of recovery after bouncing back from the $134 level. This low was triggered by escalating global political tensions. The price quickly rebounded, forming a rising channel pattern with growing momentum.
However, Solana’s recovery is now at risk. Although it briefly surpassed the local resistance trendline and experienced an 11.40% surge near $150.39, it faced a swift rejection, causing it to drop below the $147 mark. This indicates a negative cycle within the channel. As a result, Solana’s market cap has decreased by 2.29% and is approaching the support trendline.
By analyzing Fibonacci levels during the correction phase, it is evident that the negative cycle has struggled to maintain dominance above the 50% Fibonacci level at $147.43. Currently, Solana’s price is trading at $146.95, reflecting a 0.98% drop with a bearish engulfing candle. As the correction phase approaches the 200-day EMA, there is potential for a bounce near the rising 50-day EMA, which suggests a golden crossover might occur.
However, the negative crossover on the MACD indicator during the correction cycle poses a risk to both the support trendline and the dynamic average lines. If a breakdown occurs below the rising channel, it could potentially jeopardize the 23.60% Fibonacci level at $140.75, with the next support level at $134.77. Nevertheless, some analysts view the ongoing correction as a retest phase for the broken local resistance trendline, which could result in a bullish bounce and a challenge to the overhead resistance trendline for a breakout.
In the case of a breakout rally, the Fibonacci levels indicate a target of $154.60 at the 78.60% and 100% Fibonacci levels. If the Solana price action reaches the neckline at $160, it would complete a rounding bottom reversal. In the event of an extended bullish trend, the next resistance levels for Solana are projected at $166.98 and $175.74, corresponding to the 1.272 and 1.618 Fibonacci levels.