This article is also available in Spanish.
Solana (SOL) has remained above the $120 mark since experiencing a significant 24% pullback from its local highs. As the cryptocurrency market faces increasing fear and uncertainty, Solana has remained one of the best-performing cryptocurrencies this cycle, attracting the attention of analysts and investors looking for opportunities. This current price zone is critical as it will likely determine the asset’s next big move.
Related reading
Traders are closely watching to see if SOL can hold support around $120 as holding this level could set the stage for a potential recovery and rally.
However, if Solana loses this key support, the market could see a deeper correction in the coming days. With many investors eager to assess Solana’s strength amid broader market volatility, this battle at $120 will be pivotal to its near-term direction. All eyes are on Solana as it approaches this crucial decision point.
Solana stands firm
Since March, Solana (SOL) has been in a massive consolidation phase, trading between strong monthly support at $120 and monthly resistance at $210. This 180-day consolidation has caught the attention of analysts, including prominent trader Curb, who recently shared his x.com/CryptoCurb/status/1828098746174857389″ target=”_blank” rel=”nofollow”>Perspectives on x.
Curb analysis highlights the importance of this extended range-bound action, suggesting that the move could be explosive when Solana finally breaks through the consolidation.
According to Curb, Solana is primed for a rapid rise into the $400-$500 range once it breaks out of its current price range, followed by a potential rally to $800-$1,000. His forecast is based on the strong fundamentals and technical setup that Solana has maintained during this period of consolidation.
Related reading
Solana has been gaining increasing traction as the market evolves, both within the crypto community and among institutional investors.
Its growing ecosystem, which includes decentralized applications (dApps), nfts, and a robust developer community, has fueled optimism about long-term growth. Investors are closely watching the price, which is hovering around the key support of $120, awaiting a potential breakout that could propel SOL into its next bull cycle.
This consolidation phase has generated significant pressure and the next move could define Solana’s trajectory for the rest of the cycle.
SOL Price Test Demand
Solana (SOL) is trading at $129.60 after experiencing a volatile price action. Volatility and uncertainty are driving the market, and SOL is testing a local demand zone between $122 and $135.
Despite this, the price action shows a notable lack of strength. SOL remains below its 4-hour 200-day moving average (MA) which sits at $143.76, indicating weak momentum from its recent high.
For the bulls to regain control, the price needs to break above the 4-hour 200-day moving average and target the local supply at $160. This would be crucial in reversing the current bearish sentiment and paving the way for a possible rally.
Related reading
However, if the price falls below the $120 support level, it could cause problems for investors. Such a breakout would likely signal the end of the consolidation phase and the beginning of a deeper correction, which could lead SOL to lower levels.
Featured image of Dall-E, chart from TradingView
