Solana Faces Key Support at $185 After 12% Retrace
Solana (SOL) has retraced 12% from a recent high, now trading at $191 after falling to a low of $182. Analysts express mixed views on its future.
Current Situation of Solana
- Solana lost New Year highs, marking its lowest price since late December.
- After peaking at $220, SOL's bullish trend halted following a nearly 8% drop in Bitcoin's price.
- The cryptocurrency briefly bounced above $190 before retracing to $185 support.
- An investor noted that despite the drop, SOL maintains a target of $325.
- Upcoming events, such as Trump's inauguration, are seen as potential market catalysts.
Expectations for a parabolic season with Trump taking office could drive prices towards $285.
Support and Risk Levels
- Analyst Ali Martinez warns SOL must not fall below $180 to avoid a potential 20%-30% decline.
- A drop could target the $150-$130 range, last seen in September-October.
- SOL/BTC ratio is critical; reclaiming 0.0022 is necessary for continued bullish momentum.
- Concerns exist regarding Q1 performance due to oversaturation and upcoming FTX unlocks.
- Post-Q2, SOL could benefit from potential ETF launches and new market trends, with predictions of reaching $400-$500 this year.
Currently, Solana is trading at $191, reflecting a daily increase of 3.3%.
