The cryptocurrency Solana (SOL), after soaring by 1022% since September last year, is currently facing a tough phase as it trades below the vital $200 mark. The altcoin, which recently celebrated its highest weekly gain in 2024, saw a 39% increase, is now evidencing a reversal with a 16% drop from the past week’s close. Investors are closely monitoring the situation, considering the potential for a buying opportunity if SOL reaches the $134 support level, indicating a 10% to 20% correction.
Recent Performance and Influencing Factors
SOL’s remarkable performance can be attributed to Bitcoin‘s bullish market and the overselling related to the FTX bankruptcy. Despite the impressive gains, the past five days have been challenging for SOL, with its price descending around the psychologically significant $200 threshold.
Investor Considerations and Potential Outlook
Investors are advised to watch for key support levels, including a weekly support at $152 and $134, which marks the midpoint of the past bear market. Surpassing the $200 level could signal a continuation of the uptrend for Solana. However, a weekly close below $134 would indicate a potential trend shift, possibly leading to increased selling pressure. Furthermore, a worst-case scenario with panic selling driving SOL below $100 could see a further decline toward the $89 support level. Currently, SOL is trading at $175, prompting investors to stay vigilant and manage their risks effectively.