Solana (SOL) has been unable to break through a key resistance zone, leading one market analyst to predict a retest of its November lows. However, other experts believe the altcoin’s period of consolidation may be nearing an end.
After a second failed attempt this week, SOL corrected by nearly 4% on Friday. The cryptocurrency has been moving between $120 and $145 since early November, hitting its recent low three weeks ago.
Despite a strong start to the year that saw SOL rise over 13% and break a three-month downtrend, it was rejected after reaching a one-month high of $143.4 earlier this week. The asset is now trying to establish support below $140, a level that has posed significant resistance.
Analyst Crypto Batman suggests SOL could fall toward the $128-$130 support area, pointing to a potential bullish reversal pattern forming on the daily chart. He notes that the rejection indicates a local top, with the next major support zone containing an unfilled bullish Fair Value Gap (FVG).
Crypto Batman also observed that Solana may be forming an inverse Head and Shoulders pattern since the fourth-quarter corrections. The left shoulder and head appear to have formed in November and December, with the neckline around $145. The recent rejection could mark the start of the right shoulder, which might see the price drop to late-November lows before another attempt to break the neckline.
On a more bullish note, analyst King Arthur believes Solana is “finally waking up,” having broken free from a long downward channel. He emphasizes that reclaiming the $143 level is critical, as it could pave the way toward $152 and potentially $171.55. However, he cautions that a drop below $133 would signal the price isn’t ready to continue upward.
Another observer, Crypto Jelle, compared SOL’s recent sideways movement below the $200 level to BNB’s historical behavior, suggesting a period of consolidation could be followed by a sudden price expansion.
At the time of writing, Solana is trading at $134.9, down 2.3% over the past 24 hours.
Frequently Asked Questions
Frequently Asked Questions About Solanas Recent Price Action
BeginnerLevel Questions
1 What does it mean that Solana is facing rejection at the 144 level
It means the price of Solana tried to rise above 144 but failed encountering strong selling pressure that pushed it back down Think of it like hitting a ceiling
2 What are November lows in this context
This refers to the lowest price Solana reached in November 2023 Analysts are watching to see if the price will drop back down to test that same low level again
3 Why would a retest of previous lows happen
After a sharp drop markets often bounce back up A retest is when the price falls back to that previous low to see if it will hold as a support level or break lower Its a common pattern to establish a stronger base
4 How can analysts be bullish if the price is expected to drop
A bullish outlook is about the longterm trend Analysts might believe that even if the price drops shortterm the overall fundamentals and market structure are strong enough for it to recover and rise higher afterward
5 Is this a sign I should sell my Solana
Not necessarily This is shortterm price speculation Your decision should be based on your investment goals risk tolerance and belief in Solanas longterm potential not just one price prediction
Advanced Practical Questions
6 What technical indicators are analysts likely watching for this retest
They are monitoring key support levels from November volume trends and momentum indicators like the Relative Strength Index to see if the asset is becoming oversold during the dip
7 What fundamental factors could support a bullish outlook despite the price drop
Factors include strong network activity growth in the Solana DeFi and NFT ecosystem successful protocol upgrades and overall positive developments in the cryptocurrency market
8 Whats a common trading strategy around a retest scenario
Some traders wait to see if the price holds at the previous low If it bounces strongly with high volume they might see it as a buying opportunity If it breaks decisively below it could signal a further downt