Analyst Sounds The Alarm As Solana (SOL) Retests $210, Rebound Or Retrace Next?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen countless bull and bear cycles, but none quite like this one we are currently experiencing in the cryptocurrency space. Solana (SOL), a relatively new player on the block, has caught my attention due to its meteoric rise and impressive performance during market corrections.

As a crypto investor, I’ve noticed that Solana’s (SOL) surge has started to cool off over the past few days, with a 23% dip from its fresh all-time high (ATH) and an additional 8% decline in just the last 24 hours. This temporary market pullback has raised some concerns among investors about Solana’s near-term performance.

Solana Drops To Lowest Level In A Month

In simpler terms, Solana has been a standout performer among digital currencies in this cycle. It’s often grabbed the spotlight by surpassing many other investments within the market. Unusually for altcoins, Solana actually gained ground during the dips in Q2 and Q3, managing to stay above its prices before the bull market began.

During the beginning of Q4, Solana maintained its position between roughly $110 and $180, but surged beyond this range following the market’s surge after the election. This momentum carried SOL past its annual peak and allowed it to regain the $200 mark.

The digital asset kept ascending, reaching a fresh all-time high of $263 on November 23. Since that point, Solana has maintained levels between $245 and $220, sparking enthusiasm among investors as they anticipate the altcoin’s next significant price increase or exploration of new heights.

Despite a setback, Solana’s value has decreased along with Bitcoin and other cryptocurrencies over the past day. In the last 24 hours, Solana experienced an 8.7% decline, touching the $210 support point before dipping even further.

As a researcher, I’m observing that the cryptocurrency is currently testing the significant $200-$210 range as potential support, marking the first time it has done so since surpassing this level. This morning, it dipped below the $205 mark. Crypto analyst Altcoin Sherpa has hinted at a potentially bearish short-term trajectory for SOL, given the ongoing price retest.

According to the article, it’s clear that Solana (SOL) has some weakness, and this is mirrored in its price movements as well. The analysts believe that maintaining a position within the $200-$210 range is vital due to the current price action appearing rather unimpressive.

If we’re unable to maintain control over this area, it could lead the price to revisit the previous resistance point at $180. This level hasn’t been challenged as a support since we broke through it more than a month ago.

SOL Eyes Higher Targets

In a similar vein, Crypto Jack predicts that the price of SOL might dip to between $180 and $160 if it doesn’t successfully retest the $200 level as a support point. Yet, he views the more than 10% decrease as a good chance for investors to buy at lower prices, which is often referred to as “buying the dip”.

As a researcher studying Solana’s potential, I am intrigued by the prediction that its cryptocurrency could reach its all-time high (ATH) levels and strive to surpass them. Other market observers have noted that SOL is currently testing the resistance from both weekly and monthly timeframes as a potential support level. This suggests that Solana might continue to climb, provided it maintains this support.

Cryptocurrency expert Jelle remains confident about his prediction of $600, emphasizing that its strong performance during the initial phase of the cycle indicates a promising future, suggesting another victory for it in the upcoming months.

According to Bitwise’s recent forecast, Solana (SOL) could potentially surge by more than 200% in 2025. Matt Hougan, the asset manager’s Chief Investment Officer, and Ryan Rasmussen, Head of Research, believe the altcoin’s growth trend is just picking up pace, anticipating it will reach around $750 next year.

Currently, Solana is being traded at $204, representing a decrease of 8.5% over the past day and a drop of 3.1% within the last month.

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2024-12-11 11:10