Solana (SOL) has plunged over 60% from recent highs as macroeconomic tensions trigger widespread crypto market selling. Trump’s aggressive trade policies and new tariff threats have sent shockwaves through risk assets, with SOL among the hardest hit altcoins.
Despite the brutal selloff pushing SOL below critical $100 support, prominent crypto analyst Bluntz has identified bullish divergence patterns that could signal an imminent relief rally. Technical indicators suggest the token is severely oversold after dropping more than 20% in recent days.
Technical Analysis: Key Support Levels Under Pressure
SOL is currently trading at $108, struggling to maintain position above the psychologically important $100 level. The breakdown below previous support at $120 marked a decisive shift in market sentiment, leaving bulls scrambling to defend the last major demand zone before potential drops to $80.
Bullish Divergence Patterns Emerge
According to Bluntz’s analysis shared on X, multiple technical indicators are showing hidden bullish divergence – a pattern that often precedes significant price recoveries. The analyst has begun accumulating positions in oversold altcoins including SOL, noting that “sizeable bounces are highly likely” even if this isn’t the definitive market bottom.
Key Price Levels to Watch
- Critical Support: $100 – Must hold to prevent cascade to $80
- First Resistance: $120 – Previous support turned resistance
- Bull Case Target: $160 – 50% recovery from current levels
Market Impact of Trade War Fears
The broader crypto market remains under pressure as Trump’s tariff deadline approaches, with altcoins particularly vulnerable to risk-off sentiment. However, extreme oversold conditions and emerging bullish divergences suggest a technical bounce may be imminent.
FAQ
Q: What caused Solana’s recent price crash?
A: A combination of Trump’s trade war escalation, broader crypto market weakness, and technical breakdown below key support levels triggered cascading liquidations.
Q: What are the key levels to watch for a recovery?
A: Bulls need to reclaim and hold $120 to signal a potential trend reversal. The $100 level is critical support.
Q: Could SOL drop further from here?
A: If $100 support fails, analysts warn SOL could test the next major demand zone around $80.