Solana has seen prices struggle to return to strength. This is the same as last month. Solana previously reached $208 on March 18. There has been a strong price rise over five months. However, this crossover above $200 was very brief. This is because Solana fell to $167, then reversed and reached $203 again on April 1st.
Again, this cross above $200 was also short and Solana has been on a downward trend since then. Interestingly, recent price levels have resulted in Solana experiencing a 30% correction in the past six weeks. This was a big drop, but Solana now looks likely to resume its upward trend and indicators are showing strength.
Will Solana regain its bullish momentum?
Solana’s parabolic price rise from October 2023 to April 2024 caused the market to overheat, forcing a correction. This rise has been exacerbated by the surge in popularity of the Solana meme coin and the overall greed of the cryptocurrency market, led by Bitcoin.
This rise allowed Solana to briefly overtake BNB in the market capitalization rankings after completely displacing XRP and ADA. But as greed gave way to caution, Solana began correcting the rest of the market.
Solana fell to a low of $120 on May 1 and bulls defended this price support. According to a cryptocurrency analyst known by the pseudonym Inmortal, this was Solana’s last major price correction in the current market cycle.
As a result, Solana now enjoys minor support at $140. According to the SOL chart shared by Inmortal on social media, the cryptocurrency is now ready to march towards a new all-time high of $320.
last dip$SOL pic.twitter.com/SDfxYCT6EC
— Immortal (@immortalcrypto) May 5, 2024
Immortality Not the only analyst Optimistic Solana movement predictions. Analysts Maximilian FX and Orson Fawley I believe in Solana too. The price is poised to break the $200 mark again.
Solana is currently trading at $145. Chart: TradingView
Price levels to watch for Solana’s next move
As of this writing, Solana is trading at $145, down more than 30% from its yearly high of $208. After this sharp decline, Solana has created several key price levels to watch for the next big move. The first notable price resistance is $158.
If Solana can recover above $160, it could be a sign that the correction is over and the upward trend has resumed. Other resistance levels on the path to $200 are around $175 and $185. On the other hand, a decline below $140 risks a move to the next major support level at $120.
Although overall cryptocurrency market sentiment is currently neutral, the environment remains favorable for SOL price recovery.
Featured image from melanciadesign.com, chart from TradingView