Solana Price: The altcoin sector is experiencing performance issues as the Bitcoin price hovers below $65,000. Volatile market conditions have particularly impacted Solana’s native token, SOL, which has seen its market cap fall below $150. The correction has dropped it to a critical support level, and traders are closely watching for potential reversal points.
Amid this uncertainty, investors, popularly known as rattlesnakes, are preparing to enter the market on a bullish note. Will the altcoin fall to $100 or will it reverse early and move back above $150?
Here’s Why the $120 Level Is a Critical Support for Solana’s Price
Solana struggles to stem the tide of increasing supply as broader market uncertainty grows. Growing selling pressure caused the SOL price to drop nearly 40% in two weeks.
On the way down, this high-performing altcoin lost the psychological $150 mark and tested the 100-day EMA. However, the daily candlestick chart reflects lower price rejection, highlighting demand at lower levels.
Currently, SOL price is approaching a support trendline for an upcoming new bullish rally. This uptrend line has acted as a dynamic support for the past five months and provided a suitable platform for investors to accumulate on dips. With Bitcoin halving around the corner, Solana price is likely to use the support trendline to halt a pullback below $120. The altcoin is trading at $137 with an intraday gain of 1.20%, forming a Doji candle.
Moreover, Solana market price is testing the 38.20% Fibonacci level. Therefore, the daily chart of the SOL price trend shows multiple bullish supports that will trigger the next recovery rally.
Will Solana Price Return to Recovery Trend?
As the broader market remains volatile, Solana price trends highlight the possibility of a bullish reversal. With a long-standing support trendline in play, the market anticipates a long-term uptrend and another rally. In this case, SOL price could break above the psychological $150 level and target the $200 resistance level.
Conversely, an increase in supply pressure could send Solana plunging to the next psychological support level of $100.
Technical indicators
Exponential Moving Averages: The 50-day MA fails to provide a bounce as altcoins test the 100-day MA.
Directional Movement Index: The bearish crossover of the DI line is gaining space, reflecting a strong corrective wave. The uptrend of the ADX line shows a surge in the trend momentum.
