Solana (SOL) has recently experienced a slowdown in its rally, witnessing a 23% drop from its all-time high (ATH) alongside an 8% decline in the past day. This has sparked concerns among investors regarding Solana’s short-term trajectory amidst a broader crypto market pullback.
Solana’s Price Hits a One-Month Low
Solana has been a standout performer in the cryptocurrency market, consistently capturing attention with its remarkable gains. Unlike many altcoins, Solana maintained its momentum during the Q2 and Q3 retracements, staying above pre-bull run levels. As the fourth quarter commenced, Solana fluctuated within the $110-$180 range, eventually breaking through after a significant post-election market surge.
Solana’s momentum drove the token to surpass its yearly high, reaching and reclaiming the coveted $200 mark. The cryptocurrency continued its ascent, achieving a new ATH of $263 on November 23. Following this peak, SOL hovered within the $245-$220 range, sparking optimism among investors about the altcoin’s next potential “price discovery” phase.
However, in recent days, SOL’s price has retraced alongside Bitcoin and other cryptocurrencies. The altcoin experienced an 8.7% correction in the last 24 hours, testing the $210 support level before falling below it. Currently, Solana is re-evaluating the critical $200-$210 zone, marking the first retest since it surpassed this level. Early Tuesday, the price dipped below the $205 mark, causing some concern among traders and analysts.
Crypto analyst Altcoin Sherpa expressed a cautious outlook for Solana’s short-term performance based on the ongoing price retest. According to Sherpa, “SOL’s weakness has become quite evident, and this is mirrored in its current price action.” The analyst emphasized the importance of maintaining the $200-$210 range to avoid a potential decline. Failing to hold this zone might result in a drop to the pre-election resistance level of $180, which has not been tested as support for over a month.
Potential Upside for SOL
In a similar vein, Crypto Jack projected a possible dip to the $180-$160 range if Solana fails to uphold the $200 support. Nevertheless, he regards the over 10% decline as a “buy the dip” opportunity for investors. Jack’s strategy involves Solana rebounding to its ATH levels and potentially exceeding them. Other market analysts highlighted that Solana is currently testing weekly and monthly resistance levels as new support, suggesting a potential for upward movement “as long as it holds.”
Crypto analyst Jelle reiterated his ambitious $600 target for Solana, pointing out its impressive performance in the first year of the cycle and expressing confidence that Solana will “emerge victorious again in the coming months.”
Related Insights
Meanwhile, a recent report by Bitwise predicted a potential 200% rally for Solana by 2025. Bitwise’s CIO, Matt Hougan, and Head of Research, Ryan Rasmussen, expressed optimism regarding the altcoin’s momentum, suggesting that it “is just beginning to build.” They anticipate Solana reaching $750 in the upcoming year.
As of now, Solana is trading at $204, reflecting an 8.5% daily decline and a 3.1% monthly decline. The altcoin’s performance in the weekly chart remains noteworthy, as analysts and investors closely monitor its next moves. Despite recent turbulence, Solana’s potential for growth continues to captivate market participants.
