Solana (SOL) has shown signs of recovery in the crypto market, bouncing from a major trendline and reclaiming a key horizontal level. Analysts are divided on the next possible moves for SOL, with some predicting a retest of a crucial short-term resistance and others warning of a potential breakdown to new lows.
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Solana Bounces From Two-Year Trendline
After a 10.3% bounce on Friday, Solana broke past the $85 level for the first time in three days. The cryptocurrency has been trading between $78-$88, briefly dipping to $67 during a recent correction. Despite losing some ground, today’s rebound has pushed SOL above key levels, setting the stage for a potential recovery.
Market observer Daan Crypto Trades highlighted the significance of SOL reclaiming the $80 level, a major historical resistance and support zone. Analysts are now looking for SOL to establish a base above $80 before potentially turning bullish and aiming for the $88 level.
However, SOL faces a significant short-term resistance around the $88 level, which it has failed to break above since last week’s downturn. A successful breakout could pave the way for a retest of the $90-$96 zone, where the April 2025 lows are located.
On the other hand, Crypto Batman pointed out that Solana is currently retesting a two-year descending trendline, a critical level that has historically triggered major reversals. This trendline has been a key support during previous corrections and could play a crucial role in SOL’s future price action.
SOL Breakdown Still Coming?
Despite the positive outlook, some analysts have warned of a potential breakdown for Solana if selling pressure intensifies. Altcoin Sherpa cautioned that a drop to $50 could be on the cards if SOL fails to hold key support levels.
The chart analysis indicates that SOL must maintain the $77-$78 range to avoid further downside, with the next major historical support near $51. Market watcher Crypto Bullet suggested that the bottom for SOL may not have been reached yet, with a potential target around the $40 area.
As of the latest data, Solana is trading at $84.17, reflecting a 2.5% decline in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com