Market Analysis Reveals Potential SOL Price Correction
Crypto markets are bracing for a potential significant correction in Solana (SOL) prices, as prominent analyst SiDec forecasts a possible drop to double digits. The analysis comes amid increasing technical indicators suggesting bearish momentum for the popular Layer-1 blockchain token.
Key Price Levels Under Watch
According to detailed technical analysis, SOL faces critical resistance between $136-$143, with multiple technical confluences indicating potential reversal points. The current price action, following a slow uptrend from the $112 low, displays characteristics of an ABC corrective pattern – a technical formation often preceding downward price movements.
Support Zones and Entry Points
A crucial demand zone has formed between $102.1 and $98.50, representing a potential accumulation area for traders. This zone coincides with the 200 EMA on the weekly timeframe, adding significant technical weight to this support level.
Trading Strategy Breakdown
- Short Position Strategy: Consider entries between $136-$143 with strict risk management
- Long Position Strategy: Scale in from $112 down to $98.50
- Invalidation Level: A decisive break above $144 could trigger a move toward $150
Current Market Status
SOL is currently trading at $128, showing a 4% decline in the last 24 hours. The short-term outlook remains bearish until price reclaims the $143.80 level, with traders advised to maintain caution and implement proper position sizing.
Risk Management Considerations
Market participants are advised to consider scaling into positions rather than taking full-size entries at single price points. This approach provides better risk management and allows for more flexible trade execution in volatile market conditions.
Recent developments in Solana futures trading on CME add another layer of institutional interest to watch, potentially affecting price action in the coming weeks.