In the midst of ongoing geopolitical challenges, Solana (SOL) has experienced a 10% decline over the past week. While some analysts suggest that the altcoin's correction may soon conclude, they caution that a dip below a crucial support level could occur beforehand.
After testing the $168 resistance last Wednesday, Solana has retreated to a significant level, influenced by the recent market downturn. The cryptocurrency has seen a 15% decline from its monthly peak, trading around the $140 mark for the last three days. Since its breakout in May, SOL has fluctuated between the $145 and $180 price range, touching the lower end during market turbulence in June. It has struggled to regain the $160 to $170 mid-range since then.
Market analyst Lluciano believes that while Solana might experience a further dip, the long-term potential remains substantial. He pointed out SOL's performance since April, indicating that it ended a prolonged downtrend after surpassing its descending resistance in late March. Following this, SOL retested the $100 to $120 demand zone before rising to its current range in the subsequent weeks. The altcoin's chart now exhibits a one-month falling wedge pattern, with the upper boundary around the $155 to $160 mark. According to the analyst, a breakout from this pattern could propel the cryptocurrency towards May's high resistance of $187, potentially leading to a retest of the $240 level.
Similarly, trader Rose noted that SOL has been consolidating above the critical $145 resistance and the 50-day Moving Average (MA), indicating a possible breakout. "If confirmed, the price could rise toward targets at $165, $183, and $220," they commented.
However, market analyst Crypto Bullet posits that Solana's correction is nearing its end. They predict that SOL may soon drop out of its current range and retest the consolidation zone from April, around $125 to $135, to finalize the correction. This would likely be followed by a rebound back into the current range, potentially surging past the $200 mark towards targets of $220 to $250 for "one more wave up" this cycle.
In contrast, analyst Altcoin Sherpa suggested that Solana is unlikely to match its earlier performance seen in the first half of the cycle. According to him, the cryptocurrency is not expected to outperform Bitcoin (BTC) over any extended timeframe, aside from occasional spikes. He emphasized that while the leading altcoin isn't "dead," he does not foresee it replicating the rally experienced during 2021/2024.
Currently, SOL is retesting its late November 2023 support levels against BTC, which previously led to yearly lows after failing to maintain these levels. Altcoin Sherpa concluded that while Solana may continue to rise against its USDT pair, it is likely to lose ground in its SOL/BTC chart. As of now, Solana is trading at $145, reflecting a 12.1% decrease over the monthly timeframe.
