Solana SOL: Drop to $215 Before Rally to 245?

Updated

Solana is moving in the descending channel since end of November. It is currently is trading in the intraday range zone where we continue to see slow and choppy price action. A breakout from this range zone will result in a decisive move in the coming week.

A minor pullback toward $215.21, followed by a robust recovery, would indicate that buyers are regaining control, potentially paving the way for a rally toward the resistance levels of $227.83 and $245.58 (Dashed Green Projection).
If bullish momentum strengthens, this could extend gains to the next key level at $262.11, offering ample opportunities for upside continuation (Solid Green Projections).
Conversely, failure to defend the $215.21 support level could expose Solana to increased bearish pressure. A decisive break below this threshold may trigger a decline toward the critical support at $197.45 (Red Projection).

As Solana navigates this crucial juncture, traders should closely monitor price movements and volume dynamics to identify early signals of a breakout or reversal. Staying vigilant will be essential to capturing the next substantial market shift.

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We need to see a bullish momentum from the current price location (Scenario 1 above) that will push price for re-test of $227.83, the next key intraday resistance. An inability to sustain price action above $215.21 will lead to more bearishness.

Note

As expected we saw a bullish momentum from $215.21 zone, which is highly positive. If Bitcoin remains moderately bullish or will continue consolidating, Solana is likely to re-claim $227.83 in the coming hours.

Note

From above: "we continue to see slow and choppy price action"... and this is what we saw for Solana in the last few days. SOL has returned to a critical support level on the 4-hour chart. Failing to hold this level could lead to increased bearish momentum, with a likely drop toward $197.45 zone (red projection).

Note

Solana has dropped to $197.45, aligning with the bearish scenario outlined earlier this week (red projection). A reversal from this level is highly probable, but it must reclaim and hold above $197.45 to confirm recovery. Monitor price action closely around this critical level.

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