Solana (SOL) has been facing significant selling pressure since late January, losing over 40% of its value after reaching all-time highs. The price action remains bearish, with SOL struggling to find strong support as the broader market experiences volatility. Investors are growing increasingly cautious, fearing that further declines could follow if key levels fail to hold.
However, top analyst Daan believes that Solana could see a swift recovery if it manages to maintain its current structure. In a recent technical analysis shared on X, Daan revealed that Solana is still holding above a key diagonal trend line and the Daily 200MA/EMA. This suggests that if SOL can defend this area, it could regain strength and push higher in the coming weeks.
While Solana’s recent price action has been concerning, the overall structure still looks intact. If the market regains momentum, SOL could quickly reclaim lost ground and make another run toward its previous highs. The coming days will be crucial as investors watch closely to see if Solana can defend its support levels or if further downside is on the horizon. A strong bounce from current levels could mark the beginning of a new bullish phase for SOL.
Solana is currently trading at a critical zone after dropping more than 14% since Tuesday, testing the last support level that maintains its long-term bullish structure. If SOL fails to hold its current demand level, it could face sustained selling pressure, potentially leading to a deeper correction.
Daan emphasized that these support levels have historically played a crucial role in determining SOL’s trend direction, making them a key focus for traders and investors. However, he also pointed out a technical concern regarding the two sweeps of the 2021 all-time high, which could indicate market uncertainty. Despite this, Daan believes that if the market finds momentum again, Solana could recover quickly and make another run toward higher price levels.
For now, SOL’s ability to hold above key support levels will determine its short-term direction. If bulls manage to defend these areas and push the price back above resistance, a strong rebound could be in play. Solana (SOL) is currently trading at $192 after a volatile and bearish start to February. The price is holding at the 200-day exponential moving average (EMA) and remains 5% above the 200-day simple moving average (SMA), signaling that this is a critical moment for bulls to step in and defend the long-term trend.
If SOL manages to hold above these key indicators, the next objective for bulls will be reclaiming the $200 mark, a psychological and technical resistance level. A successful push above this level would signal strength and set the stage for a larger recovery in the coming weeks. However, if SOL fails to hold above the 200-day EMA and loses this crucial support, the price could face a significant drop toward lower demand areas around $170. This would confirm a deeper correction and extend the bearish momentum that has dominated the market since late January.
With the market still under pressure, SOL’s ability to defend its long-term moving averages will determine its next move. A rebound from these levels would indicate bullish resilience, while a breakdown could accelerate selling pressure and push the price further into lower demand zones.
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In conclusion, Solana is at a critical juncture, and its ability to hold above key support levels will be a determining factor in its short-term price action. If SOL can maintain its current structure and the market regains momentum, a swift recovery and potential run toward new all-time highs could be on the horizon. However, if support levels fail to hold, further downside and a deeper correction may be in store for Solana.
Tags: Solana, SOL, Solana Analysis, Solana Price, Solana Support, Technical Analysis