As the cryptocurrency market recovers, Solana (SOL) has rebounded from the major level trendline and briefly regained the major horizontal level. Some analysts are hinting that a retest of key short-term resistance may be coming, while others warn that a break through new lows remains a possibility.
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Solana rebounds from 2-year trend line
On Friday, Solana rose 10.3%, breaking above the $85 area for the first time in three days. The cryptocurrency has been hovering between $78 and $88 for the past week, and at one point fell to $67 during a correction last Thursday.
Recent market volatility has seen SOL lose the midpoint of its domestic range, falling below $80 on Thursday. However, today's rebound puts the altcoin above its recent decline and sets the stage for a possible recovery.
Amid this performance, market observer Daan Crypto Trades highlighted that the cryptocurrency has regained the important $80 level, which has historically served as a key resistance and support level.
For traders, Solana will need to sustain above this area and form a foundation above it before “watching for the lower time frame market structure to turn bullish.” Analyst Ali Martinez observed that sustained buying pressure could push SOL prices to the $88 level, which has not been seen since the beginning of the week.
The altcoin has been unable to break above this level since last week’s breakout, making it a key short-term resistance area. A break above this level could open the door to retesting the $90-$96 zone, where the April 2025 low is located.
Meanwhile, CryptoBatman noted that Solana is retesting the two-year downtrend line near recent lows in the weekly time frame. The chart shows that the macro trendline has held since early 2024 and has been tapped multiple times throughout the cycle.
“Over the past two years, every time the price has reached this level, a massive reversal has occurred,” the analyst explained. During this period, it marked the bottom of each major correction, with the most recent retest occurring in Q2 2025, leading to gains in the following quarter.
Will SOL's collapse continue?
Despite the bullish outlook, other market watchers share the expectation that Solana could turn bearish if momentum weakens. Altcoin Sherpa warned that SOL could fall to $50 if selling pressure pushes the price below a key area.
This chart shows that after losing the 200-week exponential moving average (EMA) near $121 and the April 2025 low, the key area to hold on to is the recently visited low of the local range.
If the cryptocurrency fails to sustain the $77-78 price range, as indicated by analysts, the next major historical support will be located near the breakout area in November 2023, i.e. around $51.
Market watcher Crypto Barrett suggested that Solana’s bottom may not be here yet, arguing that “those who bought BTC above $80,000 and SOL above $120 should remain locked in for a year or two.”
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He asserted that cryptocurrencies are entering a period of price declines, so “it doesn't make sense for them to return to those levels any time soon.”
In the X-post, he highlighted the stages of the market cycle, noting that the accumulation phase occurred between 2022 and 2023, and the distribution phase occurred between 2024 and early 2026. Based on this, analyst charts indicate that SOL could find a bottom near $40.
At the time of writing, Solana is trading at $84.17, down 2.5% on a weekly basis.
Featured image from Unsplash.com, chart from TradingView.com
