Solana Retests Key Support Level Amid Risks of 50% Price Drop
Solana (SOL) has experienced a nearly 40% retracement in the past month, with crucial support levels breached. Analysts caution about a possible 50% drop to yearly lows.
Key Developments
- SOL reached an all-time high of $270 nearly two months ago, marking a 270% increase over the year.
- The price has fallen over 50% from its January 19 peak.
- Loss of the $200-$220 support zone occurred at the beginning of last month, followed by a drop below $180.
- The current trading range is between $130 and $150, with a recent spike to $179.
- This week's Bitcoin correction contributed to new monthly lows for Solana; SOL dropped to $111 before recovering to $125.
- Analysts emphasize that SOL must maintain support above $100 to uphold bullish sentiment.
- Critical support is identified between $110 and $125, a significant level during previous rallies.
Price Outlook
- Failure to hold the $125 support may lead to a potential drop to $60.
- Solana has been forming a right angle ascending broadening pattern since March 2024, indicating a risk of breakdown.
- The SOL/BTC trading pair hit a 15-month low, suggesting further declines if it follows Ethereum's past price action.
- Currently, Solana trades at $124, reflecting a 14% decline over the week.
