Solana regains key support amid market retreat – a dangerous rally of $200?
As the month ends, the cryptocurrency market turns red in an instant, Solana (Sol) retests the critical level of support that can determine its short-term performance. One analyst suggested that the current range will be key to the long-awaited rally to $200.
Solana hits a multi-week low
In the cryptocurrency market callback, most cryptocurrencies have recorded a red Friday, with Bitcoin (BTC) and Ethereum (ETH) temporarily losing some key levels. Solana is one of the cycle-leading altcoins that follows the rest of the market and performs a 6% backtrack over the daily timeframe.
Sol received a significant recovery from its multiple-month downtrend, which led to the token reaching a 14-month $95 low in its early April recovery period. Over the past month and a half, cryptocurrencies have retracted several key levels, laying the foundation for potential gatherings.
But despite reaching a three-month high of $187 a week ago, cryptocurrencies are still struggling to regain the key resistance of $180. The recycling of this major obstacle could push the SOL price toward a $200 mark, making the rally a new high.
Today’s price action has lost Solana’s 22-day low of $156 after losing the $164-$180 price range and a $160 support zone since the May 8 breakout.
Trader and analyst Crypto Bullet shared Solana’s bearish outlook, which suggests that the token will perform poorly for the rest of the year. He highlighted Sol’s trading pair against ETH, noting that cryptocurrencies have been in a rising wedge on the weekly chart since the 4th quarter 2024 rally.
According to the SOL/ETH chart released by traders, the cryptocurrency crashed after losing 0.069 points. For the crypto bullet, this suggests that “ETH will soon be more difficult than SOL.”
Everyone is following Sol closes weekly
Analyst Rekt Capital noted Solana’s attempt to continue to end weekly within its high resistance range, which is key to its long-term rally.
He had previously explained that cryptocurrency re-enters its memorandum re-energized range after successfully recollecting the $120 barrier last month and fixing it in the height range of $160-175.
For analysts, SOL’s price “need to continue to show the stability of the price around the region” because that’s “Sol bursts from that range to a level above $200.”
He confirmed that Solana needs to target a similar retest as in late 2024, when cryptocurrencies built a base within the breakout range, which closed around the resistance area every week, which would lead to a massive breakout of $200.
Rekt Capital stressed that SOL has been successfully retesting the field as support over the past few weeks. However, he warned that cryptocurrencies must not close the current price zone, as this would “make fun of the possible losses in the region as support”.
A drop below this range may result in a low down range, between $120-$135. “So, price stability in the orange range is crucial here,” he concluded.
As of this writing, Solana is trading at $159, with a weekly time limit down 11.6%.
