Solana Price Surges 7.7%, Analysts Debate Potential Rally Sustainability

Solana (SOL) is attempting to hold a key support level after hitting an eight-month low of $116. The cryptocurrency has since recovered, surging 7.7% towards the $125 mark.

Key Points:

• SOL breached below the crucial $120 support level but rebounded, indicating potential for a recovery rally.
• A bullish divergence on the 3-day timeframe suggests possible bottoming and recovery.
• Analyst Crypto Scient notes SOL is at its multi-year range lows with significant liquidity between $175–$190.
• Rekt Capital highlights that SOL must maintain the $123 support to avoid further breakdown to multi-year lows.
• Historical rebounds from this level have resulted in substantial gains, though recent rallies have weakened.

Outlook:

• Maintaining a monthly close above macro support could preserve the potential for a rally.
• A breakdown below $123 may indicate further distribution and align with past bearish trends.

Currently, Solana trades at $126, reflecting a 3.4% decline over the week.