Solana Is Not Dead Yet, But Analyst Warns of SOL Price Crash

The Solana price is trading slightly below $200 following the recent market crash. However, SOL has shown remarkable resilience compared to other altcoins

Cryptocurrency prices crashed on Monday, wiping out gains made last week as traders prepare for a crucial week of inflation data and minutes from the Federal Reserve.

What Happened: A remarkable resilience was shown by Solana (CRYPTO: SOL) prices, which fell only 4.5% in the last 24 hours, compared to a 15% drop in Ethereum (CRYPTO: ETH) prices.

However, crypto analyst Ali Martinez spotted some worrying signs for Solana holders. His technical analysis highlighted several key Fibonacci retracement levels that traders are watching closely – $138.09, $169.71, $179.63, and $204.04.

Right now, SOL is hovering near the 0.618 Fibonacci level at $204.04, which typically acts as strong support in bullish markets but could become resistance if broken.

The SOL price is also moving in an upward channel with clear trendlines. The lower boundary of this channel sits right at $191, which Martinez flags as a crucial support level. If Solana drops below $191, we could see a sharp decline to $138.

Here’s the interesting part. If $SOL fails to hold above $191, a drop to $138 could be imminent.

Recent price action hasn’t been encouraging either. The latest candles show sellers taking control in the short term.

While previous dips below $191 saw quick recoveries as buyers stepped in, repeated testing of this support level makes a breakdown more likely.

What’s Next For Solana: There are two main scenarios playing out. If SOL manages to hold above $191 and regain momentum, it could climb back to $220 and possibly $240. However, if it breaks below $191, Martinez warns of a potential drop to $138 – a level that lines up with both Fibonacci support and historical price patterns.

Despite these concerning technical signals, Solana's ecosystem has remained active recently. The network’s resilience during recent market turbulence suggests it still has strong backing from investors and developers. While the short-term price action looks shaky, calling Solana “dead” seems premature given its continued adoption and recent development activity.

See More: Time To Buy As Crypto Prices Dip? 3 Underrated Altcoins Ready To Skyrocket In February

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