Solana (SOL) recently experienced a dip to a one-month low before bouncing back from a critical support zone. The cryptocurrency is now aiming to reclaim a crucial psychological barrier as it looks to resume its bullish rally. However, some analysts are cautioning that SOL could retest new lows if the market volatility continues.
After closing below the $200 support level for the first time in nearly a month, Solana has been trading within the $120-$220 price range since early February. The recent pullbacks in the market have seen SOL’s price drop by 20% in the weekly timeframe, losing the $200 level.
Analysts like Sjuul from AltCryptoGems have expressed concerns about SOL’s current trajectory, mentioning that if the cryptocurrency fails to hold the $190-$200 range, it could struggle to find strong support before reaching the $150 demand zone. Wise Crypto also highlighted the importance of a make-or-break retest for Solana as it navigates a critical support zone amidst market volatility.
Despite the challenges, there are signs of potential recovery for SOL. Wise Crypto pointed out that the Stochastic RSI indicator is signaling oversold conditions, hinting at a possible bounce in the near future. Additionally, Crypto Batman noted that SOL has historically bounced back from its major ascending trendline, suggesting a positive outlook amidst the chaos.
As of now, Solana is attempting to break above the $200 psychological barrier and reclaim this key level. If successful, the next target could be the $208-$210 area near the 10-day Moving Average, according to Ted Pillows. Reclaiming and holding above this level could pave the way for a bullish run towards $216-$220, close to the 30-day MA.
Currently trading at $199, SOL has seen a 1.4% increase in the daily timeframe. The cryptocurrency’s performance in the one-week chart indicates a potential rebound, as depicted in the chart sourced from TradingView.
In conclusion, Solana’s recent bounce from a critical support zone signals a possible recovery in the midst of market volatility. Reclaiming key levels and maintaining momentum will be crucial for SOL to resume its bullish rally and potentially reach higher price levels in the near future.