Solana (SOL) has seen a 12% retrace from the Monday high, falling to a crucial zone in the last 24 hours. Some analysts remain bullish ahead of Trumpโs inauguration, while others have warned that the cryptocurrencyโs bullish momentum could be in danger if the current levels are lost.
Solana Holds Key Support Zone
Amid the market retrace, Solana has also lost its New Year highs, falling to its lowest price since the late December retrace. On Monday, SOL registered a 17.3% increase from its yearly opening after retesting the $220 mark.
However, its bullish momentum was halted after Bitcoinโs price dropped nearly 8% in 24 hours. After hovering between the $190-$199 prince zone, Solana fell below the zoneโs lower range, dropping to its current low of $182 on Thursday.
In the last 24 hours, the cryptocurrency bounced above the $190 range before dipping to the $185 support zone again. A crypto investor pointed out that, despite the latest drop, Solana still holds the price target of $325, as it didnโt fall to the previous low of $175.
The investor suggested that โas the downtrend is sharp, the uptrend is likely to be sharp as well,โ adding that a โV-shaped rebound is likely to occur. The target price may be reached faster than the time shown in that pattern.โ
Trader Crypto General noted that SOL has tested the previous breakout level during the โmuch-needed correction.โ Ahead of the post-election pump, the $180-$185 zone served as a key resistance level, which was later broken when Solana climbed above $200.
Moreover, this level was retested as support during the late December retraces, serving as a bounce zone for the cryptocurrency. Crypto General suggested that the following days will be โvery bullish for the market,โ citing Trumpโs upcoming inauguration as a potential catalyst.
With Trump taking the oath, markets are expected to start a parabolic season, taking sol also along with them. My target is around $285.
Analyst Warns Of These Levels For SOL
Crypto analyst Ali Martinez warned investors about SOLโs current levels, stating that the cryptocurrency โmust not break below $180.โ A potential drop below this support zone could send Solana into a 20% to 30% decline.
Martinez stated that the $150 to $130 range, not seen since September and October, would become โa likely target.โ Similarly, analyst Jelle recently stated it would be โWorth keeping an eye on SOL/BTC for the coming weeks.โ
According to the post, SOLโs trading pair against Bitcoin has been at a key zone, suggesting that Solana should reclaim the 0.0022 level soon to continue its bullish momentum, as it currently sits at 0.0020.
Meanwhile, another market watcher noted that SOLโs performance during Q1 could be dampened due to โover-saturated positioning, a cooling off of pump fun metas, and the looming FTX SOL unlocks that was sold some time ago and have started unlocking, with the biggest unlock coming in March.โ
However, he considers that โfrom Q2 onwards,โ Solana will be a โmajor winnerโ due to the possible launch of Solana-based exchange-traded funds (ETFs) and the โpotential for new Pump.fun metasโ reigniting its bull case. Based on this, the analyst predicts that SOL could hit $400-$500 this year.
As of this writing, Solana is trading at $191, a 3.3% increase in the daily timeframe.
