- Solana price dropped nearly 31% over the past eight days, retesting the 200-day SMA at $135.16.
- A recovery above the weekly resistance level at $135.71 will likely trigger a 25% run-up to $169.79.
- A four-hour candlestick close below $115.51 will invalidate the bullish thesis for SOL.
Solana price has seen a considerable drop over the last week as the crypto markets continue to bleed. While this descent might seem bearish, it has allowed SOL to reach an inflection point, allowing it a chance to make a comeback.
Solana price looks ready for a recovery rally
Solana price shed roughly 31% since January 2 and seemed to set a base at a weekly support level - $135.71. However, yesterday’s sell-off pushed SOL below the said barrier and well below the 200-day Simple Moving Average (SMA) at $135.16.
Investors should note that the weekly support level and the 200-day SMA are inside the daily demand zone, extending from $115.51 to $144.70. Hence, this cluster of support levels is a strong confluence that bears are unlikely to sustain a breach.
Hence, market participants can expect Solana price to kick-start a 25% uptrend to retest the lower limit of a daily supply zone, ranging from $169.79 to $179.19. The January 6 swing high at $154.32 might pose a temporary blockade, but bulls are likely to push through it.
In some cases, Solana price could retest the weekly resistance level at $174.37 present inside the daily supply zone, bringing the total climb from 25% to 28%.
SOL/USDT 4-hour chart
While things are looking up for Solana price, a four-hour candlestick close below the daily demand zone’s lower limit at $115.51 will create a lower low. This development will skew the odds in the bears’ favor and invalidate the bullish thesis for SOL. In this situation, Solana price could revisit the $110.35 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.
US SEC may declare XRP a 'commodity' as Ripple settlement talks begins
The US SEC is considering declaring XRP as a commodity in the ongoing settlement talks with Ripple Labs. FOX News reports suggest Ethereum's regulatory status remains a key reference for XRP’s litigation verdict.
Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause
Cardano price stabilized above $0.70 after posting another 5% decline in its 3rd consecutive losing day. Multiple ADA derivatives trading signals are leaning bullish, but the US trade war impact outweighs the positive shift in inflation indices.
Stablecoin regulatory bill receives green light during Banking Committee hearing
The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish proper regulations for stablecoin payments in the country.
Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation
Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.