Solana has been respecting its $120 support level for over a year, consistently bouncing back every time it tested this zone. However, the price is now once again hovering around this crucial level after a small bounce a couple of weeks ago. The key question remains: will Solana hold this support and rally again, or is a major breakdown coming?
Weakening Support: A Bearish Signal?
When a price level is tested repeatedly, it often weakens as buyers at that level get exhausted. The most recent bounce from $120 was notably weak, indicating that buying pressure might be fading. This could be an early warning sign that sellers are gaining control, increasing the probability of a breakdown.
The $75 Scenario: What If Support Fails?
If Solana fails to hold $120, the next major support level sits around $75—a price zone where significant demand previously emerged. A breakdown could trigger a sharp move lower as stop-losses get triggered and bearish momentum accelerates.
Key Factors to Watch:
• Volume & Strength of the Current Test – Is buying volume picking up, or are sellers in control?
• Market Sentiment & Macro Trends – Broader crypto market trends, Bitcoin’s movement, and macroeconomic factors could influence Solana’s direction.
• False Breakouts & Traps – Sometimes, a brief break below support is a shakeout before a strong reversal. A reclaim of $120 after a breakdown could signal a bullish trap for shorts.
Final Thoughts
While $120 has been a strong floor for Solana, repeated tests make it more fragile. If buyers fail to step in with conviction, a drop toward $75 becomes a real possibility. However, if bulls defend this level strongly, we could see another bounce, potentially setting up a reversal.
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Weakening Support: A Bearish Signal?
When a price level is tested repeatedly, it often weakens as buyers at that level get exhausted. The most recent bounce from $120 was notably weak, indicating that buying pressure might be fading. This could be an early warning sign that sellers are gaining control, increasing the probability of a breakdown.
The $75 Scenario: What If Support Fails?
If Solana fails to hold $120, the next major support level sits around $75—a price zone where significant demand previously emerged. A breakdown could trigger a sharp move lower as stop-losses get triggered and bearish momentum accelerates.
Key Factors to Watch:
• Volume & Strength of the Current Test – Is buying volume picking up, or are sellers in control?
• Market Sentiment & Macro Trends – Broader crypto market trends, Bitcoin’s movement, and macroeconomic factors could influence Solana’s direction.
• False Breakouts & Traps – Sometimes, a brief break below support is a shakeout before a strong reversal. A reclaim of $120 after a breakdown could signal a bullish trap for shorts.
Final Thoughts
While $120 has been a strong floor for Solana, repeated tests make it more fragile. If buyers fail to step in with conviction, a drop toward $75 becomes a real possibility. However, if bulls defend this level strongly, we could see another bounce, potentially setting up a reversal.
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
- Drop a like and leave a comment!
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Sol is breaking out to the downside like my bias was. Watch out for the 75/80 dollar for the next support
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Free discord trading community
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.