Solana Approaches Key Resistance at $125 Amid Market Volatility

Solana (SOL) is encountering a critical liquidity resistance zone after experiencing significant volatility and selling pressure. Currently, SOL is over 47% down from its early March highs. Key points include:

Recent buyer interest has sparked optimism among traders.
Analyst Big Cheds indicated that a move above $125 could signal a breakout.
A breakout might attract more capital into the altcoin market.
Rejection at resistance may lead to consolidation or further downside.

Recent Performance and Market Reaction

Solana rebounded over 25% following a correction from over $200 to a low of $95. The rally was driven by:

Positive macroeconomic news, including a temporary pause on tariffs announced by US President Trump.
Improved market sentiment favoring high-beta crypto assets like SOL.

If SOL surpasses $125 with strong volume, it may confirm an end to the local downtrend and initiate a bullish phase. Conversely, failing to reclaim this level could result in renewed selling pressure.

Technical Analysis at $128 Resistance

SOL is currently trading at $122, facing technical resistance around $128 due to converging 4-hour moving averages. Key insights are:

A successful push above $128 could build momentum for higher resistance levels.
Failure to break this threshold may weaken bullish sentiment.
The $120 level acts as immediate support; losing it could lead to declines toward $100.

Traders are focused on these levels to determine Solana's next move, which will influence its potential recovery or continuation of the downtrend.