Solana has faced a sharp 23% correction since hitting new all-time highs almost three weeks ago. This pullback, while significant, reflects broader market conditions as Bitcoin and altcoins enter a phase of indecision. The market is currently searching for support and consolidating below critical levels, and investors are closely monitoring whether this phase will lead to a recovery or a further decline.
Top analyst Jelle recently shared a technical analysis on X, suggesting that Solana has promising upside potential. According to Jelle, if Solana can reclaim the $222 level in the coming days, it will likely spark a rapid and substantial rise. This key price is a critical threshold that could change sentiment and reignite the popular altcoin’s bullish momentum.
While the overall market remains uncertain, Solana’s resilience and building momentum above $222 could set the stage for a decisive breakout. However, if this level is not recovered, its consolidation could be prolonged or lead to new setbacks. Solana remains a closely watched asset, with retail and institutional investors awaiting clearer signals about its next direction. Will it regain its bullish trajectory or face continued selling pressure? The coming days are likely to provide answers.
Solana finds support at previous resistance
Solana has pulled back to test crucial liquidity levels between $200 and $210, an area that previously acted as resistance but is now being evaluated as support. This zone holds significant importance for SOL price action as it could determine whether the asset continues its bullish momentum or faces further consolidation.
Solana price action is in a consolidation phase with no definitive direction, but signs of a possible breakout are becoming clearer. The asset seems poised to make a decisive move, especially if it reclaims key levels in the coming sessions.
Jelle Analyst recently shared ideas aboutemphasizing the critical importance of the $222 level. Jelle noted: “Recover $222 and SOL will quickly return to the spotlight. Deflect those lows and send them higher.” This suggests that if Solana successfully reclaims this key level, it could rediscover price, triggering a massive breakout and attracting renewed attention from retail and institutional investors.
If Solana achieves this, it may set the stage for a rally that mirrors its impressive past performance, reaffirming its position as one of the best-performing altcoins on the market. Conversely, failure to hold the $200 to $210 support range could lead to further consolidation or a deeper correction. Solana remains a focal point in the market and investors are eagerly awaiting its next move.
Crucial Demand for SOL Testing
Solana (SOL) is trading at $220, showing resistance after reaching the $203 level twice over the past week. This area has proven to be a strong support zone as buyers intervened to prevent further declines. The price is now hovering at a critical juncture, and market participants are closely watching the next major move.
If SOL can hold above the $203 support and reclaim the $238 resistance area, a quick recovery could ensue, which could pave the way for a renewed uptrend. Recovering $238 would indicate strength and attract new buying interest, pushing SOL back into higher trading ranges.
However, this recovery may take time as the broader crypto market entrenches in indecision. Bitcoin and other major altcoins are also moving sideways, increasing uncertainty around Solana’s immediate price action. Until a breakout or breakout occurs, SOL is likely to remain range-bound.
Traders and investors should monitor these key levels closely. A sustained break above $238 could reignite bullish momentum, while failure to hold support at $203 could lead to a deeper correction. For now, patience is required as Solana navigates this critical phase of price action.
Featured image of Dall-E, TradingView chart
Fountain: NewsBTC.com
