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Solana Price Prediction: SOL at Risk of Sliding to $120 Downside

3 hours ago
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Solana price drops to a 5-month low of $138, testing key support with risks of sliding to $120 if the level breaks.

 

Solana (SOL) is currently at a critical juncture, with the price hovering around a significant support zone.

After a sharp decline, the cryptocurrency has reached a fresh 5-month low, leading many traders and analysts to closely monitor whether SOL will break down further or experience a short-term rebound. 

As of now, Solana is trading near $138, with the key support zone between $134 and $140. The next few days are crucial, as a breach of this level could open the door for further downside movement, possibly pushing the price towards $120.

Solana Faces Critical Support Test

Solana’s recent price movement has raised concerns among traders. After months of gradual decline from highs near $210, SOL now finds itself at a critical support zone. 

The price has been consistently forming lower highs and lower lows, signaling weakening momentum in the market. The $135–$138 range is an important level for Solana, as it has previously served as a key support zone.

Traders are focused on how the cryptocurrency reacts to this level. If the price holds above this support, a potential rebound to $165–$175 could occur. 

However, a breakdown below $134 would suggest further downside, with targets near $120. These levels could see increased selling pressure, especially with SOL’s volume thinning out, which is a typical sign of reduced buying interest.

As the price tests these levels, Solana’s fate will depend on whether buyers can defend the support zone or if sellers will take control and push the price lower. This key moment could define the next major movement in SOL’s price.

Bullish Divergence Signals Possible Rebound

Despite the bearish trend, lower timeframes are showing signs of potential reversal. On both the 4-hour and daily Relative Strength Index (RSI), bullish divergences are beginning to appear. This suggests that selling pressure may be slowing, even though the price is still near key support.

If these bullish signals hold, there could be a short-term rebound. The price may attempt to move upwards towards $150, with potential resistance at $168.

However, traders remain cautious, as these divergences need confirmation. If SOL fails to hold above the support, the bullish setup could be invalidated, and the price may resume its downward trajectory.

For now, the appearance of bullish divergence on lower timeframes offers some hope for a reversal, but caution is necessary given the broader downtrend. A sustained rebound or further decline will depend on how the support zone holds up in the coming days.

Related Reading: Fidelity Advances Solana Spot ETF Plan as SOL Tests Key Price Levels

TD Sequential Signals a Potential Bottom

In addition to the bullish divergences, a TD Sequential “1” buy signal has appeared on Solana’s chart, which typically indicates a potential short-term bottom. This signal often shows up after a series of consecutive down candles, suggesting that selling momentum may be fading.

The buy signal on the TD Sequential indicator comes after a prolonged period of decline, with SOL testing the $138–$142 range.

If this signal holds, a short-term rally could occur, with targets near $150 to $155. However, it’s important to note that the broader trend remains fragile, and this counter-trend signal requires confirmation.

If the TD Sequential setup plays out as expected, it could provide some relief to traders, but the overall market structure will determine how sustainable any price recovery will be.

A strong reaction from the support zone is essential for SOL to regain its footing and avoid further declines.

Source: https://www.livebitcoinnews.com/solana-price-prediction-sol-at-risk-of-sliding-to-120-downside/