After hitting a one-month low, Solana (SOL) has bounced from a critical support zone and is attempting to reclaim a crucial psychological barrier before potentially resuming its bullish rally. However, some analysts suggested that the cryptocurrency could retest new lows if the market volatility persists.
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Solana Price Retest Major Support
On Thursday, Solana lost the $200 level as support after closing the day below this level for the first time in nearly a month. The cryptocurrency has been trading inside the $120-$220 price range since early February, finally breaking out of this range in mid-September.
A week ago, the marketโs bullish momentum and strong corporate treasury purchases pushed SOLโs price to an eight-month high of $253, leading many investors to anticipate the long-awaited rally to higher levels.
However, this weekโs pullbacks have sent most cryptocurrencies below crucial levels, with Bitcoin and Ethereum dropping to $108,000 and $3,800, respectively. Meanwhile, Solana has seen a 20% decline in the weekly timeframe, losing the $200 level.
Analyst Sjuul from AltCryptoGems asserted that SOL was โin freefall after that nasty deviation back into the range.โ If Solana fails to hold the current $190-$200 range, the analyst considers it would be โvery difficultโ to find strong support before the demand zone around $150, a level not seen since the start of July.
Similarly, market watcher Wise Crypto also noted that Solana could be in a make-or-break retest, as it retests a critical support zone and the overall market still shows some signs of weakness.
According to the post, SOL has been trading within an ascending channel since April, bouncing between the upper and lower boundaries throughout this period.
If the marketโs recent volatility continues, the cryptocurrency could retest the channelโs support zone, around the $177-$188 levels. โIf this zone breaks, the next major support is down below $150 โ so caution is key,โ they added.
SOL Bounce Eyes $200 Reclaim
Despite the volatility, Wise Crypto also signaled that โStochastic RSI is signaling oversold conditions, suggesting a potential bounce could be on the horizon.โ As a result, if SOL holds this support area, a move toward the $250 barrier could follow.
As Solana approached its major ascending trendline, Crypto Batman noted that SOL has bounced from this level each time it has retested it, suggesting that โIn the midst of chaos, you have to look at things from a different perspective.โ
Notably, SOL bounced from the recent lows on Friday Morning and is currently attempting to break above the $200 psychological barrier.
Nonetheless, the cryptocurrency must daily close above this key level and continue to hold it over the weekend to transform the pullback into a downside wick deviation in the weekly timeframe.
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Ted Pillows added that if this level is reclaimed, the $208-$210 area, near the 10-day Moving Average (MA), would be the next target.
According to the market watcher, reclaiming and holding above that level would be the first bullish sign, which could potentially push Solanaโs price toward $216โ$220, near the 30-day MA.
As of this writing, SOL trades at $199, a 1.4% increase in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
