Solana (SOL) is navigating a crucial phase in its market trajectory, as current price action aligns closely with previous support and established demand zones. Recent market analysis points to a retest of broken structures, alongside persistent buying interest around the $120 mark. This combination of factors places a potential recovery target between $150 and $200 firmly in traders’ sights.
Price Structure Under Scrutiny
Recent insights from market analyst Crypto Tony indicate that Solana experienced a failure to sustain its prior high, leading to a breakdown in its established price structure. This sharp sell-off transitioned market sentiment from a bullish outlook to a more cautious stance, as resistance levels have not been convincingly breached, allowing sellers to maintain their foothold during any relief rallies.
The price is currently consolidating below what was once support but has now turned resistance. This critical zone will significantly influence whether the ongoing price action could lead to a rebound or further weakness. The lack of strong upward movements suggests that buyers are adopting a conservative approach, waiting for clearer signals before committing.
From a technical standpoint, the consensus is clear: failure to reclaim previous high levels could expose SOL to further downside risks. Conversely, a decisive hold above these marks could invalidate current bearish narratives. For now, traders are advised to approach with caution, as Solana’s short-term prospects remain uncertain.
Robust Demand Zone Underpins SOL
Conversely, analyst Crypto TA King emphasizes the importance of a longstanding weekly demand zone situated near $120, which has shown a remarkable ability to absorb selling pressure throughout broader market corrections. The repeated reactions from this region indicate a strong presence of institutional buying, highlighting the potential for support in times of market volatility.
The volume patterns further bolster this interpretation; recent tests of the demand zone have coincided with decreasing selling volume, a classic indication of seller exhaustion. This trend often precedes significant upward movements, especially when the price fails to break through established support.
As long as SOL maintains its position above this demand base, there remains a plausible narrative for a rebound towards mid-range resistance. However, a weekly close below this vital zone could significantly alter the market landscape, pushing traders to re-evaluate their positions.
Accumulation Phase Suggests Positive Outlook
Moreover, an analysis by Hudlerr suggests that the current corrective phase may be nearing its end. A breakout from a descending trendline indicates a shift towards stabilization rather than further declines, aligning with typical Wyckoff accumulation patterns.
This accumulation zone reflects a space where previous selling pressure has been absorbed. Price action within this framework is choppy yet shows a controlled balance between buyers and sellers, with limited downside movement reinforcing the defensive sentiment among market participants.
The anticipated trajectory, if the structural dynamics hold, shows potential for gradual reclamation of key horizontal levels, paving the way for upward movement towards higher price targets. Provided that higher lows are consistently maintained, the broader narrative surrounding Solana remains positive, pointing to upward momentum rather than renewed struggles.
