Solana (SOL) is currently under significant selling pressure, grappling to maintain key support levels while the entire cryptocurrency market experiences ongoing turbulence. Since the beginning of March, SOL has witnessed a staggering decline of over 37%, mirroring the risk-off sentiment prevailing in the broader market.
The challenges facing Solana are part of a larger narrative; fears surrounding trade wars and macroeconomic uncertainties have sent both the cryptocurrency and U.S. stock markets plummeting to their lowest points since late 2024. As investor confidence dwindles, SOL finds itself precariously positioned, struggling to reclaim critical price points.
Amid this downturn, some analysts are suggesting that a turnaround is possible. Notable analyst Ali Martinez recently pointed out on X that Solana appears to be forming a classic cup-and-handle pattern—a bullish technical setup that often precedes significant price breakouts. Should this pattern come to fruition, SOL might rebound to higher price levels, reversing some recent losses.
In the immediate term, Solana needs to surmount essential resistance levels to confirm a bullish trend. If market conditions improve, SOL might gain renewed momentum; however, if it fails to maintain its current level of support, further declines could ensue. The forthcoming weeks will play a pivotal role in shaping Solana’s short-term trajectory.
Solana Bullish Setup Hints at a Potential Breakout
Currently, Solana is trading below the $130 threshold, finding it tough to establish a solid foundation for recovery. The overarching market downturn continues to exert pressure on SOL, with volatility and speculation dictating short-term price movements. With bears still dominating, Solana’s future direction remains uncertain, and the sentiment is predominantly bearish.
Despite the current decline, many investors hold out hope that SOL is on the brink of a notable recovery once the overall market begins to trend upwards. This optimism stems from historical patterns where Solana has displayed robust comebacks following prolonged periods of selling pressure.
Martinez’s long-term technical analysis on X has highlighted the potential for a bullish breakout, estimating that Solana could reach $3,800 if the cup-and-handle formation is confirmed—an incredible potential gain of 2,900% from its current levels.
As the days unfold, it is vital for both Solana and the broader cryptocurrency market to establish local lows and gain momentum for a potential rebound. If market sentiment shifts positively and key resistance levels are reclaimed, SOL could emerge as a standout performer in the upcoming bullish phase.
Price Struggles Around $125
At present, Solana hovers around $125, contending with resistance at the $130 level after several unsuccessful attempts to breach it. The bears still maintain control, keeping SOL under significant selling pressure, and bulls must act swiftly to preempt further declines.
For a recovery to gain traction, SOL needs to surpass the $130 mark and aim for $150. Successfully reclaiming this pivotal level would signal renewed buying strength, potentially setting the stage for a larger recovery rally. A push beyond $150 could shift market sentiment, opening doors to even higher targets.
Conversely, if SOL fails to maintain its current demand and dips below $125, further downside risks loom. A drop beneath this threshold could place the price within lower support levels between $100 and $105, a zone where buying interest may stabilize the asset.
The upcoming trading sessions will be crucial in determining whether SOL can regain its momentum or if enduring selling pressures will push it lower. Investors are keenly observing key resistance and support levels, as uncertainty lingers amidst widespread market weakness.
Featured image from Dall-E, chart from TradingView
