The Solana (SOL) market has registered a near 2% price increase in the last 24 hours, representing slight relief for investors enduring steep losses from the last week. Between August 14 and 15, the altcoin tumbled by roughly 13%, sliding from near $210 to around $180 as broader crypto markets reacted to US Producer Price Index (PPI) data. Despite the short-term recovery, prominent market analyst Ali Martinez warns that Solana may remain in danger yet, projecting the potential for further downside in the days ahead.
Solana Rejected At $208, Key Support Levels At $180, $160 In Focus
In an X post on August 16, Martinez outlines a bearish technical outlook on the Solana market following a solid rejection at a key technical price level. Solana surged above $200 this week, marking the first time in this price region since July 23. However, the altcoin was unable to sustain its upward trajectory, encountering resistance at the $208 price level.
Notably, this price region forms the upper boundary of a well-established trading price channel whose lower boundary lies around $160. Therefore, there is strong potential for the current retracement to persist with initial support targets set around $180, i.e., the midline of the trading range under study. However, a decisive price break below this level would force SOL to $160, indicating a potential 17% decline from present spot market prices.
On the other hand, if Solana bulls can sustain prices above $180, it would invalidate these bearish projections, perhaps pushing the altcoin into consolidation. However, Solana must decisively claim the price resistance around the $208 region to show bullish intent, with potential upside targets set around $250.
Solana Price Outlook
At the time of writing, Solana (SOL) trades at $192, representing a net gain of 2.83% over the past week. However, the asset’s trading volume has dropped sharply, plunging by 52.25% in the last 24 hours, signaling a significant decline in recent market activity. Despite the reduced volume, investor sentiment around Solana remains broadly positive. According to data from Coincodex, the current Fear & Greed Index stands at 56 (Greed), indicating a leaning toward bullishness.
Meanwhile, the US Securities and Exchange Commission (SEC) recently announced an extension of its review period for the Bitwise and 21Shares spot Ethereum ETF applications. The decision had little impact on investor sentiment toward Solana, as such extensions are a standard procedure in the SEC’s handling of crypto-related filings. The commission is expected to reach its final deadline in October.
Looking ahead, Coincodex analysts maintain a cautiously optimistic outlook for SOL’s price. Their forecasts project Solana at $197 over the next month, and a potential climb to $219 within three months, should broader market conditions remain supportive.
