As we observe an ongoing shift in the wider market sentiment, Solana is currently at a crucial demand zone close to the $150 mark. It has suffered from weeks of constant selling pressure, resulting in the asset trading nearly 20% below its May peak of $185. Despite recent efforts to rally, Solana has faced tough resistance. And despite maintaining above the significant support for now, the overall structure indicates that there might be potential for a downside risk if the market conditions do not improve soon.
Top-notch analyst Efloud conducted a technical analysis on Solana, emphasising the need to monitor Solana’s reactions to broader Bitcoin fluctuations. He pointed out that if Bitcoin (BTC) continues to consolidate sideways while Bitcoin dominance (BTC.D) rises, altcoins such as SOL may face difficulties. Under such circumstances, Solana might have to retrace to find stronger support at mid-zones, especially around the $123 and $116 levels.
These price zones have previously acted as robust support/resistance areas and could become major turning points if the bearish momentum persists. A breakdown towards these targets would likely coincide with increasing BTC.D and continued investor caution in the altcoin market. Until then, SOL remains vulnerable within a fragile technical structure, and traders will closely monitor for either a rebound or deeper correction in the upcoming days.
Currently, Solana is trading about 50% down from its all-time highs, with the explosive momentum seen at the end of 2024 now replaced by more subdued price action. Despite this underperformance, many analysts remain hopeful about Solana’s potential once a new altcoin rally kicks off. For now, the focus is on maintaining critical demand zones that could determine whether SOL is preparing for recovery or further downside.
Weekly Chart Analysis brings to light that Solana is currently trading at $148.33 on the weekly timeframe, showing a 3% decline over the past seven days. The price has dropped roughly 20% from its May peak of around $185. It’s now testing the critical $140–$150 support zone. This level has played a pivotal role in the past and could shape SOL’s short-term trajectory.
Despite the current cooling, the structure may still offer solid opportunities for new entrants. If these levels hold and macro conditions improve, SOL could be setting the stage for a sustainable rally, ultimately leading to new all-time highs.
