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Solana is presently evaluating a crucial demand zone near the $150 threshold after experiencing weeks of relentless selling pressure and a broader alteration in market sentiment. The asset trades nearly 20% beneath its May peak of $185, with recent recovery efforts encountering significant resistance. While currently maintaining above key support, the overall framework indicates that downside risk persists if market conditions do not enhance soon.
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Leading analyst Efloud provided a technical assessment on X, emphasizing the necessity of monitoring Solana’s reaction to the wider Bitcoin landscape. He pointed out that should Bitcoin (BTC) continue to drift sideways while Bitcoin dominance (BTC.D) rises, altcoins like SOL may find themselves struggling. In this scenario, Solana might trace back to seek stronger support at mid-zones, especially around the $123 and $116 marks.
These price areas have previously functioned as solid support/resistance zones and could act as pivotal inflection points if bearish trends continue. A descent towards these targets would likely align with a rising BTC.D and ongoing investor hesitance in the altcoin market. Until then, SOL remains exposed within a delicate technical framework, and traders will be keenly monitoring for either a rebound or deeper corrections in the days ahead.
Solana Holds Crucial Support As Analysts Anticipate Bullish Outcomes
Solana is currently trading roughly 50% down from its all-time highs, with the explosive momentum observed at the end of 2024 now supplanted by more tempered price movements. The asset’s underperformance has made investors wary, yet many analysts remain hopeful about Solana’s future once a new altcoin rally commences. For now, attention is on maintaining critical demand zones that could dictate whether SOL is poised for a recovery or additional downside.
According to Efloud, if Bitcoin persists in consolidating sideways while Bitcoin dominance grows, Solana may secure support at various mid-zones, especially around $123 and $116. The $140 area has historically served as a robust support/resistance pivot, and a deviation near this level—briefly losing it before regaining strength—could offer a short-term purchasing opportunity.
Efloud observes that this scenario doesn’t necessarily imply that SOL must decline to those levels, but existing market conditions—aside from Bitcoin—lack robust pair structures. Should SOL decisively surpass the $168 resistance, a new upward phase could potentially be triggered, with $230 possibly emerging as the next significant resistance zone.
On the SOL/BTC pair, Efloud is monitoring for a reclaim of the 0.0015 level or a pullback to 0.00115 for affirmation. Another significant support level lies at 0.000988 sats.
Despite the current cooling down, the structure may still present solid opportunities for new participants. If these levels endure and macro conditions improve, SOL could be poised for a sustainable rally, ultimately leading to new all-time highs.
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Weekly Chart Analysis – Holding Steady Near Crucial Support
Solana is presently trading at $148.33 on the weekly chart, reflecting a 3% decrease over the last week. The price has fallen approximately 20% from its May peak of around $185 and is now testing the essential $140–$150 support zone. This level has consistently served as a pivot point historically and may define SOL’s short-term trajectory.
The illustration indicates that Solana has struggled to regain the 50-week moving average (currently near $170), which now serves as significant resistance. A definitive weekly close above this point could pave the way for a bullish advance toward $185 and potentially $200. Nonetheless, failing to maintain above the 100-week moving average around $132 might trigger additional downward pressure, with $123 and $116 identified as the subsequent demand zones to monitor—levels indicated by analyst Efloud in his mid-zone analysis.
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Trading volume has consistently decreased over the last three weeks, indicating lower participation, yet also hinting that aggressive selling is subsiding. If bulls successfully reclaim $160 with confidence, the structure remains positive. Currently, SOL is in a consolidation phase, poised for either a breakout or further correction as broader cryptocurrency market conditions evolve.
Featured image from Dall-E, chart from TradingView
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