Solana (SOL) faces significant risk as the broader cryptocurrency market rebounds from local lows and SOL struggles to break above the key resistance level of $140. This impoverished performance has raised investor concerns, with many worried that Solana will not keep up with the market’s recent rally.

Some analysts are even predicting a deep retracement to the yearly low around $78 if the price continues to fall. Despite holding up relatively well during previous crashes of Bitcoin and other altcoins, Solana’s current price action suggests that the risk of a correction is growing.

If SOL fails to break above $140 and catch up with the market recovery, it could face an even bigger drop. While Solana has weathered market turbulence better than some of its peers before, there is growing sentiment that it could now be Solana’s turn to take a significant drop. Investors are watching the upcoming moves closely.

Solana struggles to maintain bullish momentum

Solana (SOL) has retreated over 7% this week, while many other altcoins have surged to post double-digit gains. This has raised concerns among investors who fear that SOL could follow the same trajectory that many altcoins have experienced in recent months.

One of the prominent analysts and former asset managers, Amdtrades, with over 9 years of experience, shared technical analysis of Solana’s price actionhighlighting some worrying price targets.

According to Amdtrades, Solana is at a key crossroads. If it fails to break through the $140 resistance level — a fundamental price point that once served as forceful support — a deep correction could be in store. He noted that the first key level to watch is $115, which could trigger further declines if breached.

After that, SOL could drop to $100; in the worst case, it could even drop to $78. If it drops to lower prices, it would mean a 40% correction from current levels.

The risk of Solana hitting these lows remains high, especially if the company continues to struggle while other cryptocurrencies rebound. However, amdtrades also highlighted the possibility of a rebound.

If SOL breaks and sustains above $140, it could trigger a rebound and possibly reverse the negative trend. Traders are now closely watching these levels to see if Solana faces a deeper pullback or finds the strength to regain momentum.

SOL Price Tiers to Look Out For

Solana (SOL) is currently trading at $130, a key level that could determine its next move. After testing the resistance at $140, the price hit a 7% rejection, raising concerns among traders.

The $140 level aligns with the daily 200 exponential moving average (EMA) at $139.26, a significant technical indicator that has provided support since October last year but has now turned into resistance. This reversal has put additional pressure on SOL bulls to regain control.

SOL needs to break above this EMA and reclaim the $140 level to get a bullish reversal. If bulls can do that, it will clear the negative market sentiment and likely trigger an aggressive 20% rally towards the next supply zone near $163. However, failure to reclaim these levels could lead to a more bearish outcome.

If the price continues to decline and fails to break through the $140 level, SOL could see a deeper correction, with the potential for a 15% drop towards $110.

Featured image is from Dall-E, chart is from TradingView