Solana (SOL) is currently facing significant risk as it struggles to break above the crucial $140 resistance level. This underperformance has raised concerns among investors, who worry that SOL may experience a deep retracement to its yearly low of around $78 if it continues to lag. Despite previously weathering market turbulence better than its peers, SOL’s current price action suggests that a correction could be imminent.
Analysts are closely monitoring SOL’s movements, with one prominent analyst and former asset manager, Amdtrades, highlighting some concerning price targets. According to Amdtrades, if SOL fails to break past the $140 resistance level, it could trigger a deep correction. The first key level to watch is $115, and if breached, further downside could follow. In a worst-case scenario, SOL could drop as low as $78, representing a 40% correction from current levels.
While the risk of SOL hitting these lows remains high, Amdtrades also emphasizes the potential for a rebound. If SOL breaks and holds above $140, it could spark a recovery and reverse the negative trend. Traders are closely monitoring these price levels to determine whether SOL will face a deeper pullback or regain its bullish momentum.
Currently trading at $130, SOL’s next move will likely be determined by its ability to break above the $140 resistance level. This level coincides with the daily 200 exponential moving average (EMA), which has flipped from providing support to resistance. SOL bulls must reclaim this EMA and the $140 level for a bullish reversal. If successful, it could trigger a 20% surge towards the next supply zone at $163. However, failure to reclaim these levels could lead to a more bearish outcome, with the potential for a 15% drop towards $110.
It is important for investors to closely monitor SOL’s price action and the key resistance and support levels mentioned to make informed trading decisions. Featured image from Dall-E, chart from TradingView.