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Solana has faced a sharp 23% correction since hitting new all-time highs nearly three weeks ago. This pullback, while significant, reflects broader market conditions as Bitcoin and altcoins enter a phase of indecision. The market is currently looking for support and consolidation below critical levels, with investors closely monitoring whether this phase will lead to a recovery or further decline.
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Lead analyst Jelle recently shared a technical analysis on X, suggesting that Solana has promising upside potential. According to Jelle, if Solana manages to recapture the $222 level in the next few days, it could trigger a rapid and substantial rally. This key price point is a critical threshold that could change sentiment and reignite bullish momentum for the popular altcoin.
While the broader market remains uncertain, Solana’s ability to recover and build momentum above $222 could set the stage for a decisive breakout. However, failure to reach this level could prolong its consolidation or lead to a further retracement. Solana remains a closely watched asset, with retail and institutional investors waiting for clearer signals on its next direction. Will it recover its bullish trajectory or face continued selling pressure? The next few days will likely provide answers.
Solana finds support in the previous resistance
Solana is retraced to test crucial liquidity levels between $200 and $210, an area that previously served as resistance but is now priced as support. This zone holds significant importance for SOL’s price action, as it could determine whether the asset will continue its bullish momentum or face further consolidation.
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Solana’s price action is in a consolidation phase with no definitive direction, but signs of a potential breakout are becoming clearer. The asset appears poised to make a decisive move, especially if it regains key levels in the coming sessions.
Analyst Jelle recently shared insights on X, highlighting the critical importance of the $222 level. Jelle noted: “Recover $222 and SOL quickly returns to the spotlight. Deviate those lows and send it higher. This suggests that if Solana can reclaim this key level, it could re-enter price discovery, triggering a massive breakout and attracting renewed attention from retail and institutional investors.
If Solana can achieve this, it could set the stage for a rally that mirrors its previous impressive performances, reaffirming its position as one of the best-performing altcoins on the market. Conversely, failure to hold the support range between $200 and $210 could lead to further consolidation or a deeper correction. Solana remains a focal point in the market, with investors eagerly awaiting his next move.
SOL Crucial question test
Solana (SOL) is trading at $220, showing resilience after touching the $203 level twice last week. This area proved to be a strong support zone as buyers stepped in to prevent further declines. The price now finds itself near a critical juncture, with market participants carefully watching the next major move.
If SOL manages to hold above the $203 support and reclaim the $238 resistance area, a rapid recovery could follow, potentially paving the way for a renewed uptrend. Recovery to $238 would signal strength and attract new buying interest, pushing SOL back into higher trading ranges.
However, this recovery may take some time as the broader cryptocurrency market entrenches itself in indecision. Bitcoin and other major altcoins are also moving sideways, increasing uncertainty over Solana’s immediate price action. Until a breakout or breakdown occurs, the SOL is likely to remain range-bound.
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Traders and investors should monitor these key levels closely. A prolonged break above $238 could reignite bullish momentum, while failure to hold the $203 support could lead to a deeper correction. For now, patience is required as Solana navigates this critical phase of its price action.
Featured image of Dall-E, TradingView chart