This Key Level Will Determine Solana’s Next Direction: SOL Price Analysis

Cryptocurrency trader Rekt Capital discussed the potential for a price slide for Solana last week, which was followed by a major correction in the general market.

In their latest newsletter, they highlighted how Solana has continued to trade along the lower red path and has also shown some downside wicks into the low 100s. However, the price has started to recover and has now reclaimed two-month support, represented by the line at around $165.68.

The price is moving as if it has successfully retested the blue level around $145.

The downside wicks Solana (SOL) has experienced this month visited the $120 region (orange), which has been holding as support for the last six months.

The $120 region also appears to be the point where premium buying behaviors have been ongoing for the past three months. These behaviors seem stronger, as evidenced by the downside wicks.

It is strong to the point where Solana was able to perform its most recent monthly closes above a much higher monthly level of approximately $145 (blue).

As long as Solana continues to hold support at $145, it is expected to spike to $165, where another resistance level exists. However, if the $145 level turns into resistance, we may see a drop back to $120.