Solana may target $200 “if it can maintain the current support level” — anticipated how
Solana (SOL) is currently trading at a key support level near $163, after a pullback from the local high around $183. This price marks a crucial support area that may determine the future price movement of SOL. Breaking below this level may indicate a deeper pullback, intensifying dumping pressure and potentially prompting SOL to retest lower support levels.
However, top analyst Daan shared a Technical Analysis report, pointing out that if SOL can hold the 'green zone' around $160, it may pave the way for a rebound. Daan suggests that in the most optimistic scenario, SOL can hold this support level and start to gradually climb, with the ultimate goal of testing the downtrend line that has been suppressing its pump. This setup will keep SOL's bullish structure intact and create a potential entry point for investors to follow the rebound.
As the broader Cryptocurrency market shows volatility and Solana faces this key level, the next few days will be crucial. Traders and investors are closely following whether this demand zone can support a reversal, which could potentially bring SOL back to recent highs.
Despite recent market fluctuations and uncertainties, Solana (SOL) has successfully held the key support level around $160. This level is crucial for SOL's price structure as it serves as a strong demand area and can be the foundation for the next pump.
Cryptocurrency analyst Daan recently shared his views on X, revealing that the 'most optimistic scenario' for SOL is to keep it in the 'green zone' of around $160 and gradually bring it back up to the downward trend line that limits recent gains.
Daan believes that the next attempt to break this trend line is likely to be successful and may push the price of SOL above $200. He suggests that waiting for confirmation of this breakthrough may be a wise strategy for cautious investors, as there is still ample pump space even after confirmation of the reversal. His analysis highlights confidence in the potential recovery of SOL and sees this accumulation zone as a hopeful buying opportunity.
However, Daan also acknowledges that there is still a certain degree of downside risk. If SOL fails to hold the $160 level, a deeper pullback may occur, potentially pushing SOL to test lower support levels.
Currently, the market will closely follow this support level as a key indicator of the short-term trend of SOL. Staying above this support level will indicate strength and open the door to a potential Rebound, while breaking through may lead to a longer bearish phase. As the overall market sentiment remains mixed, the next move of Solana is crucial for traders and investors alike.
Solana's current stock price is $163, previously touching the 4-hour 200 Exponential Moving Average (EMA), which is a key indicator of short-term strength. Maintaining above this EMA indicates a bullish outlook for SOL, suggesting buyers are intervening to support this level of price. If SOL can maintain momentum above the 200 EMA, it may lay the groundwork for a potential rebound, setting a new local high and possibly challenging the recent high of around $183.
However, the $160 level is still a key support area. Losing this support could trigger significant dumping pressure, potentially pushing SOL down to the $150 range, at which point further demand may emerge. Investors looking for potential accumulation opportunities will closely follow this area, as the decline may provide favorable entry points for long-term holders.
On the contrary, if SOL breaks through the current demand level, it will confirm a new bullish trend, paving the way for SOL to target and potentially surpass recent highs. As SOL hovers in this key technical area, traders will follow any decisive trend that may signal the next direction, whether it is a continued pump trend or a retracement to a lower demand level.
(Data Source: Sebastian Villafuerte)
