Solana is currently navigating a crucial demand zone near the $150 mark after facing several weeks of relentless selling pressure and a general shift in market sentiment. The cryptocurrency is trading approximately 20% lower than its peak of $185 recorded in May, with recent recovery attempts encountering significant resistance. While it has managed to stay above key support levels for the time being, the prevailing market structure indicates that further downside risk could emerge if conditions do not improve soon.
Prominent analyst Efloud recently shared insights on social media platform X, emphasizing the importance of monitoring Solana's performance in relation to Bitcoin dynamics. He pointed out that if Bitcoin (BTC) continues to consolidate sideways while its dominance increases, altcoins like Solana may face challenges. In such a scenario, Solana could revert to find stronger support in the middle price zones, particularly at $123 and $116, which have historically served as reliable support and resistance levels. A decline towards these targets would likely align with a rising Bitcoin dominance and ongoing caution among investors in the altcoin market.
As it stands, Solana is trading around 50% below its all-time highs, with the explosive momentum observed at the end of 2024 now yielding to a more subdued price environment. This underperformance has left investors wary; however, many analysts maintain an optimistic outlook for Solana's potential once a new altcoin rally commences. The current focus remains on sustaining critical demand zones that will be pivotal in determining whether SOL is poised for recovery or further decline.
Efloud suggests that if Bitcoin continues its sideways consolidation while Bitcoin dominance ascends, Solana could find support in several mid-range areas, especially around $123 and $116. The $140 region has historically acted as a significant pivot point, and a brief loss followed by a strong recovery at this level might present a short-term buying opportunity. He notes that while a dip to these levels is not mandatory, the existing market conditions—aside from Bitcoin—exhibit weak pairing structures.
If SOL can successfully break above the resistance at $168, it could spark a new upward trend, with $230 potentially emerging as the next key resistance zone. On the SOL/BTC trading pair, Efloud is attentive to reclaiming the 0.0015 level or a pullback to 0.00115 for confirmation. Another critical support level is positioned at 0.000988 sats. Despite the current downturn, the market structure still offers promising opportunities for new investors. Should these levels hold and macroeconomic conditions improve, SOL could be gearing up for a substantial rally, possibly reaching new all-time highs.
In the weekly chart analysis, Solana is trading at $148.33, reflecting a 3% decline over the past week. The price has decreased about 20% from its May peak of approximately $185 and is now testing the significant support zone between $140 and $150. This level has historically served as a pivotal point and could dictate SOL’s trajectory in the short term. The chart indicates that Solana has yet to reclaim the 50-week moving average, currently around $170, which stands as a critical resistance level. A decisive weekly close above this threshold could pave the way for bullish momentum toward $185 and potentially $200.
Conversely, failing to maintain above the 100-week moving average, located near $132, could trigger additional downward pressure, with $123 and $116 identified as the next demand zones to monitor—levels highlighted by analyst Efloud in his mid-zone analysis. Volume has consistently declined over the past three weeks, indicating diminished participation, yet also suggesting that aggressive selling may be waning. If bulls can convincingly reclaim the $160 level, the market structure remains favorable. For now, SOL is caught in a consolidation phase, awaiting either a breakout or further correction as broader cryptocurrency market dynamics unfold.
