Solana Analyst Identifies $123 and $116 as Key Support Levels

Solana is testing a critical demand zone near $150 after weeks of selling pressure, currently trading 20% below its May high of $185. Strong resistance has impeded recent recovery attempts. Despite holding above major support, the risk of downside remains if market conditions do not improve.

Analyst Efloud emphasizes monitoring Solana's response to Bitcoin dynamics. If Bitcoin continues sideways consolidation and its dominance rises, Solana may retrace to find stronger support at key levels around $123 and $116. These zones have previously served as significant support/resistance points.

Key Points

Solana is down about 50% from all-time highs.
Focus is on maintaining critical demand zones for potential recovery.
If Bitcoin's dominance increases, SOL may face further declines.
The $140 region could present a short-term buying opportunity if reclaimed.
Current price is $148.33, with a 3% decline over the last week.
Major resistance is at the 50-week moving average near $170.
A decisive close above this level could lead to bullish momentum toward $185 or $200.
Failure to hold above the 100-week moving average around $132 may trigger further downside.
Volume has decreased, indicating reduced selling pressure but also diminished participation.

Solana remains in consolidation, awaiting either a breakout or deeper correction based on broader market conditions.