After hitting a month's low, Solana (SOL) is bounced back from the key support zone and trying to regain important psychological barriers before resuming bullish gatherings. However, some analysts have suggested that cryptocurrencies can retry new lows if market volatility continues.
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Solana Price retests key support
On Thursday, Solana lost the $200 level in support after closing the day below this level for the first time in almost a month. Cryptocurrency has been trading in the price range of $120-$220 since early February, and eventually broke this range in mid-September.
A week ago, the market bullish momentum and strong corporate financial purchases brought Sol's price to an eight-month high of $253, leading many investors to forecast the much-anticipated rally to a higher level.
However, this week's pullback put most cryptocurrencies below key levels, with Bitcoin and Ethereum dropping to $108,000 and $3,800 respectively. Meanwhile, Solana lost the $200 level with a 20% drop in her weekly time slot.
AltCryptogems analyst Sjuul claimed that Sol is “free falling after that nasty deviation, then back into range.” If Solana can't keep the current $190-$200 range, analysts think it's “very difficult” to find strong support around $150 before the demand zone.
Similarly, Market Watcher Wise Crypto also noted that Solana has retested its key support zone and could be found at Make-or Break Retest as the market as a whole is still showing signs of weaknesses.
According to the post, Sol has been trading within the upward channel since April, bounced back the upper and lower boundaries throughout this period.
If the market's recent volatility continues, cryptocurrencies can retest the channel's support zone at the level of $177 to $188. “If this zone breaks, the next major support is below $150. Caution is important,” they added.
Sol Bounce Eyes $200 Recover
Despite the volatility, Wise Crypto signaled “the stochastic RSI is unsold, suggesting that potential bounces could be on the horizon.” As a result, if Sol holds this support area, a move to the $250 barrier could continue.
As Solana approaches the main ascending trend line, Crypto Batman points out that Sol bounced off this level every time he retested it, suggesting that “in the middle of chaos, we have to look at things from a different perspective.”
In particular, Sol bounced off the recent lows on Friday morning, and is now trying to break past the $200 psychological barrier.
Nevertheless, cryptocurrency must close this key level every day and keep it on the weekend, turning the pullback into a negative side core deviation in the weekly time frame.
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Ted Pillows added that if this level is played, the next target is the $208 to $210 area, close to the 10-day moving average (MA).
According to Market Watchers, collecting and holding above that level would be the first bullish sign that could push Solana's price to $216-220 near the 30-day MA.
At the time of this writing, Sol has traded at $199, with a 1.4% increase in daily time frames.
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