Solana (SOL) has reached a decisive moment as the cryptocurrency tests critical support at $120, with mounting selling pressure threatening to push prices even lower. Currently down nearly 60% from all-time highs, SOL’s price action reflects broader market uncertainty and macroeconomic headwinds that have rattled crypto investors.
Renowned crypto analyst Ali Martinez has identified $120 as a crucial make-or-break level for Solana. Historical data shows this price point has repeatedly served as a major pivot, determining whether SOL enters recovery or continues its downward trajectory. With Trump’s new tariff announcements sparking fears of a broader market downturn, this support level takes on even greater significance.
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Technical Analysis Points to Critical Support Zone
The technical outlook for Solana remains precarious as several key indicators flash warning signs:
- Price currently testing the 200-day moving average at $120
- Weekly RSI showing oversold conditions but lacking reversal signals
- Volume profile indicates thin support below current levels
- Next major support zone clusters around $95
As major altcoins face critical support tests, Solana’s ability to hold the $120 level could have broader implications for the entire crypto market. A breakdown below this threshold could trigger cascading liquidations and accelerate selling pressure across the sector.
Macro Factors Weighing on Crypto Markets
The current pressure on Solana comes amid escalating global trade tensions and monetary policy uncertainty. Recent tariff announcements have spooked investors, leading to risk-off behavior across all markets. Crypto assets, particularly high-beta tokens like SOL, have faced intensified selling pressure as traders reduce exposure to volatile assets.
What’s Next for Solana?
For any hopes of recovery, Solana must first defend the critical $120 support level. A daily close below this zone could trigger a deeper correction toward $95. Conversely, reclaiming $150 would signal potential trend reversal and open the path to higher levels.
Key Levels to Watch:
- Critical Support: $120
- Secondary Support: $95
- Key Resistance: $150
- Weekly 200 MA: $95
Traders should monitor volume profiles and order book depth for early signs of potential direction change. The next few days will be crucial in determining whether SOL can maintain its structural support or faces further downside pressure.