Amid the market correction, Solana (SOL) has reclaimed the $100 mark after dropping below this crucial support for the first time in over a year. However, some analysts consider a 15% bounce toward a key historical support is necessary to target higher levels.
Is Solana Bull Run Over?
Solana hit a 14-month low on Monday after falling 20% in 24 hours, momentarily trading around the $95 mark for the first time since February 2024. After the correction, SOL bounced around 18% to $112 before retracing toward the $100-$110 price range.
Fueled by the market’s memecoin frenzy, the altcoin was one of the leading cryptocurrencies last year, hitting an all-time high (ATH) of $270 on January 19. Since then, the cryptocurrency has dropped over 63% from the start-of-year highs.
During the Q1 retraces, Solana retested the $120 support zone several times, bouncing from the range, which served as a crucial level during the 2021 and 2024 rallies.
However, several analysts pointed out that the support weakened with each retest, and losing that level could see Solana fall under the $100 mark and risk a 50% drop to the $60 support zone.
After dropping below the key barrier, trader Crypto Bullet highlighted that SOL’s recent price action broke below August 5 lows, which signals that the cryptocurrency’s bull market could be over.
According to the trader, Solana had a “clear 5-wave impulse to the upside that ended in January with TRUMP coin blow-off top,” which suggests a corrective a, b, c zigzag will follow. Based on this, the trader expects “a good mid-term bounce to ~$200 (Lower High)” for wave b and a drop to the $30-$40 price range for wave c.
SOL Needs 15% Jump
Analyst Ted Pillows considers that Solana could see a massive rally after the correction. He explained that SOL bounced from its multi-year ascending support trendline, a key rebound point in Q3 2023.
The last time Solana retested this trendline, it rallied 1,000% toward the $270 mark. If the cryptocurrency holds this level, the analyst considers that SOL could bounce to its ATH in the coming months.
Meanwhile, several analysts noted that recovering the $120 support zone is crucial after the recent price action, as this level could determine the altcoin’s next move again.
Sjuul from AltCryptoGems highlighted that SOL needs to “give a clear bounce and reclaim the $120 level” now that “liquidity is taken.” He asserted that failing to recover this key range would suggest that another drop could be ahead.
Similarly, Ali Martinez pointed out that Solana’s TD Sequential flashes a buy signal on the weekly chart. Per the post, SOL “needs to stay above $95 and break $121 to set the stage for a rally toward $147.”
As of this writing, Solana trades at $105, a 1% decline in the daily timeframe.
