Solana Analyst Predicts Possible Retrace Before Attempting New ATH
Solana (SOL) is currently trading 6% below its all-time high, experiencing a 16% increase from the $212 demand level. This rally has attracted significant attention from traders and investors, highlighting a strong uptrend in SOL's price action.
Crypto analyst Johnny provided technical analysis on X, suggesting that Solana may retrace to previous yearly highs before attempting to break its all-time high again. This prediction follows a notable performance where SOL rose over 55% in less than two weeks.
The rapid ascent has established Solana as a prominent asset in the market, driven by rising demand and solid fundamentals. However, Johnny's insights indicate a potential healthy pullback, which might present a buying opportunity before SOL challenges historic price levels.
Solana Testing Critical Supply Level
Solana is testing a crucial supply level just below $250 after a significant surge nearing its all-time high. This level represents a key battleground for sellers before SOL enters price discovery, where it could achieve new highs.
According to Johnny's analysis, while Solana’s price action remains strong, a temporary dip to lower levels may be needed to gain momentum. He suggests that SOL could drop into the $220 demand zone, a critical area for buyers to support the rally. A strong recovery from this point could target an aggressive move above its ATH of $260.
Despite the possibility of a retrace, Solana's bullish momentum remains evident. The asset could experience a 6% rise above its ATH if market conditions remain favorable. Continued strength in the broader crypto market could enhance buying pressure, potentially allowing SOL to surpass its ATH.
Currently, focus is on Solana's movement within this supply zone. A successful breakout could lead to new highs, while a retrace to $220 might provide a launching pad for the next phase of its rally. SOL's trajectory underscores its increasing significance in the market as traders anticipate its next major movement.
Price Action Details
Solana is trading at $242, maintaining stability after several days of consolidation below the $250 resistance level. This threshold is critical as SOL approaches its all-time high. Despite this pause, price action remains robust, supported by overall bullish sentiment in the crypto market.
Breaking above $250 will be crucial for determining Solana's next steps. A successful push beyond this level could lead to a retest of its ATH and advance into price discovery. Conversely, failure to overcome this resistance might prompt a retrace to lower demand zones.
If a retrace occurs, the next support level to monitor could be around $222, where buyers might re-enter to rejuvenate momentum. Should the retrace extend further, SOL could revisit previous yearly highs at $210, a significant price level.
Featured image from Dall-E, chart from TradingView