Just last week, sentiment was strongly bullish, but the current market atmosphere is filled with fear and uncertainty. One notable analyst, Carl Runefelt, has shared a chart highlighting the risk of Solana losing its key support level, which could lead to further downside.

The entire crypto market is grappling with high volatility, amplifying uncertainty. This has led to growing fear among investors, many concerned about the potential for deeper corrections. While Solana showed strong momentum recently, the present market conditions have dampened optimism, leaving traders anxious for a clear signal that could reignite confidence. 

As Solana continues to hover near this critical support level, the coming days will be pivotal in determining whether it can regain its bullish momentum or if further declines are on the horizon.

Solana Testing Crucial Demand Levels

Solana is at a critical juncture, as its price action has shifted from bullish to bearish in just a few days. Bulls are now proceeding with caution, especially below the $140 mark, which represents a key structural level. 

The $137 support level is crucial, as it could be Solana’s last defense against a further drop. Top crypto analyst Carl Runefelt recently shared a technical analysis on X, highlighting the precarious situation Solana finds itself in. According to Runefelt, Solana could see a sharp drop to $128 if this support level breaks, extending the current consolidation phase.

In addition to the risk of a breakdown, Runefelt also pointed to key resistance levels that bulls need to target if Solana is to regain its upward momentum. The most important levels to watch are the $150 and $160 supply zones. 

A break above these zones would be necessary to confirm a reversal into a bullish trend. Until then, the price action remains uncertain, and investors are closely monitoring these critical support and resistance levels.

The current market volatility and the threat of further declines are causing hesitation among traders. Solana’s ability to hold its support or break through resistance will determine its next move.

SOL Technical Analysis: Prices To Watch

Solana (SOL) is trading at $139 after a correction from local highs that haven’t been broken since July. The price faces significant resistance as it struggles to reclaim the 4-hour 200 moving average (MA) at $139.9, a critical strength indicator.

For bulls to regain momentum, holding above this level is essential. Additionally, the price must reclaim the 4-hour 200 exponential moving average (EMA) at $144.3 to confirm a bullish reversal and signal a potential recovery.

However, the market may see further downside pressure if Solana fails to surpass these crucial technical levels. A deeper correction could lower the price to $120, a key demand zone that could serve as a new level of support. This would extend the current consolidation phase and put more downward pressure on Solana’s price.

Investors are watching closely as SOL navigates this critical range, with both bulls and bears waiting for a decisive move in either direction.

Featured image from Dall-E, chart from TradingView

Some analysts are even predicting a deep retrace to its yearly low of around $78 if the price continues to lag. Despite holding relatively well during Bitcoin’s and other altcoins’ earlier crashes, Solana’s current price action suggests that the risk of a correction is growing. 

If SOL fails to break above $140 and align with the market’s recovery, it could face a steeper downturn. While Solana previously weathered market turbulence better than some of its peers, there’s a growing belief that now may be Solana’s turn to experience a significant fall. Investors are keeping a close eye on upcoming movements.

Solana Struggling To Keep Bullish Momentum

Solana (SOL) has retraced over 7% this week, while many other altcoins surged, posting double-digit gains. This raised concerns among investors, who fear SOL might follow the same trajectory many altcoins experienced in recent months.

One prominent analyst and former asset manager, Amdtrades, with over 9 years of experience, shared a technical analysis of Solana’s price action, highlighting some concerning price targets.

According to Amdtrades, Solana is at a crucial crossroads. If it fails to break past the $140 resistance level—a fundamental price point that once served as strong support—a deep correction could follow. He noted that the first key level to watch is $115, which could trigger further downside if breached.

After that, SOL could drop to $100; in a worst-case scenario, it may fall as low as $78. If it drops to the lower prices, it would represent a 40% correction from current levels.

The risk of Solana hitting these lows remains high, especially if it continues to struggle while other cryptocurrencies recover. However, Amdtrades also emphasized the potential for a rebound.

Should SOL break and hold above $140, it could spark a recovery and possibly reverse the negative trend. Investors are now carefully watching these levels to see if Solana will face a deeper pullback or find the strength to regain momentum.

SOL Price Levels To Watch

Solana (SOL) is currently trading at $130, a crucial level that could determine its next move. After testing the $140 resistance, the price faced a 7% rejection, raising concerns among traders.

The $140 mark coincides with the daily 200 exponential moving average (EMA) at $139.26, a significant technical indicator that had provided support since October last year but has now flipped to resistance. This reversal has created added pressure on SOL bulls to regain control.

SOL must break above this EMA and reclaim the $140 level for a bullish reversal. If bulls succeed, it would clear negative market sentiment and likely trigger an aggressive 20% surge toward the next supply zone around $163. However, failure to reclaim these levels could lead to a more bearish outcome.

If the price continues to lag and cannot break past the $140 mark, SOL could face a deeper correction, with the potential for a 15% drop toward $110.

Featured image from Dall-E, chart from TradingView