This article is also available in Spanish.
Solana (SOL) has seen its rally slow in recent days, falling 23% from its new all-time high (ATH) and more than 8% in the last day. Some investors worry about Altcoin’s short-term performance as the cryptocurrency market pulls back.
Related reading
Solana falls to the lowest level in a month
Solana has been one of the leading cryptocurrencies this cycle, outperforming most of the market and grabbing headlines. Unlike most altcoins, the cryptocurrency outperformed during the second and third quarter pullbacks, staying above pre-bull run levels.
As the fourth quarter began, Solana continued to oscillate within the $110 to $180 price range, breaking out of this range after the market’s post-election surge. SOL’s momentum propelled the token past its yearly high and successfully reclaimed the $200 barrier.
The token continued to rise to its new ATH of $263 on November 23. Since then, Solana oscillated between the $245-$220 price range, fueling investor optimism about the altcoin’s next “price discovery” move.
However, SOL price has taken a hit in the last day along with Bitcoin and the rest of the crypto market. Solana saw an 8.7% correction in the last 24 hours, falling to the $210 support level before falling below it.
The cryptocurrency is now retesting the key $200-$210 zone as support for the first time since surpassing it, falling below the $205 level on Tuesday morning. Altcoin crypto analyst Sherpa shared a possible bearish outlook for SOL’s near-term performance based on the ongoing price retest.
According to the mail“SOL’s weakness has been quite obvious and is also reflected in the Sol Shitcoin price action.” Analysts explained that the current price action seems seemingly disappointing, suggesting that holding the $200 to $210 region is crucial.
Failure to hold this zone would likely send the price to the pre-election resistance level of $180, which has not been tested as support since surpassing it over a month ago.
SOL aims for higher goals
Similarly, Crypto Jack predicted a possible drop to the $180-$160 range if SOL fails to overcome its retest of the $200 mark as support. However, he considers the drop of more than 10% to be a “buy the dip” opportunity for investors.
Based on its possible play for Solana, the cryptocurrency would bounce to its ATH levels and attempt to surpass them. Other market watchers noted that SOL is retesting weekly and monthly time frame resistance as support, which could push Solana higher “as long as it holds.”
Jelle Crypto Analyst reaffirmed his $600 target for the cryptocurrency, noting that it “performed incredibly during the first year of the cycle” and “will be a winner again in the coming months.”
Related reading
Meanwhile, the latest from Bitwise report predicted that SOL could rally more than 200% by 2025. The asset manager’s CIO Matt Hougan and head of research Ryan Rasmussen see the altcoin’s momentum as “just starting to build,” predicting it will hit the $750 next year.
At the time of writing, Solana is trading at $204, down 8.5% and 3.1% on the daily and monthly period.
Featured image from Unsplash.com, chart from TradingView.com
