Solana saw its price struggle to return to an upward trend levels from last month. Solana had already reached $208 March 18 after a sharp increase in prices over five months. However, this crossover above $200 was very brief as Solana dropped to $167 before reversing and reaching $203 again on April 1.
Again, this crossover above $200 was also brief and Solana has been in freefall since then. Interestingly, the recent price level has subjected Solana to a 30% correction over the past six weeks. Although it was a sharp crash, Solana now appears ready to resume its uptrend, with indicators now bullish.
Will Solana regain bullish momentum?
Solana’s parabolic price rise from October 2023 to April 2024 led to an overheating of the market that would inevitably correct itself. This rise was primarily exacerbated by the rise in popularity of Solana coins and the general greed of the crypto market, led by Bitcoin.
This rise saw Solana briefly overtake BNB in the market cap rankings after completely replacing XRP and ADA. However, as greed turned to caution, Solana began to correct with the rest of the market.
Solana fell to $120 on May 1 as bulls defended this price support. According to a crypto analyst known by the pseudonym Inmortal, this was the last major price correction for Solana in the current market cycle.
As a result, Solana now finds itself around minor support at $140. According to a SOL chart shared by Inmortal on social media, the crypto is now poised to hit a new all-time high of $320.
The last dive ever$ SOL pic.twitter.com/SDfxYCT6EC
– Inmortal (@inmortalcrypto) May 5, 2024
The immortal is not the only analyst predict a bullish movement in Solana. Analysts Maximilian FX and Orson Fawley also believe Solana is ready to break the $200 mark again.
Solana is currently trading at $145. Chart: TradingView
Price Levels to Watch for Solana’s Next Move
At the time of writing, Solana is trading at $145, down more than 30% from its yearly high of $208. After such a sharp fall, Solana has created key price levels to watch for its next big move. The first notable price resistance lies at $158.
If Solana manages to get back above $160, it could indicate that the correction is over and the uptrend has resumed. Other resistance levels on the path towards $200 are around $175 and $185. On the other hand, a decline below $140 is likely to lead towards the next major support level at $120.
Although overall crypto market sentiment is currently neutral, the environment remains favorable for a SOL price recovery.
Featured image from melanciadesign.com, chart from TradingView
