Solana (SOL) has been holding above the $120 mark since experiencing a significant 24% retrace from its local highs. As the crypto market faces growing fear and uncertainty, Solana has remained one of the strongest performers this cycle, attracting attention from analysts and investors looking for opportunities. This current price zone is critical, as it will likely determine the asset’s next big move.

Traders are closely monitoring whether SOL can maintain support around $120, as holding this level could set the stage for a potential recovery and rally.

However, if Solana loses this key support, the market could see a deeper correction in the coming days. With many investors eager to assess Solana’s strength in the face of broader market volatility, this battle at $120 will be pivotal for its short-term direction. All eyes are on Solana as it approaches this crucial decision point.

Solana Holding Strong

Since March, Solana (SOL) has been in a massive consolidation phase, trading between strong monthly support at $120 and a monthly resistance at $210. This 180-day consolidation has caught the attention of analysts, including top trader Curb, who recently shared his insights on X.

Curb’s analysis highlights the significance of this prolonged range-bound action, suggesting that the move could be explosive when Solana eventually breaks above the consolidation.

According to Curb, Solana is primed for a swift rally to the $400-$500 range once it breaks out of its current price range, followed by further upside to potentially $800-$1,000. His forecast is based on the strong fundamentals and technical setup Solana has maintained throughout this period of consolidation.

Solana has gained increasing traction as the market evolves, both within the crypto community and from institutional investors.

Its growing ecosystem, which includes decentralized applications (dApps), NFTs, and a robust developer community, has fueled optimism for long-term growth. Investors are watching closely as the price hovers near the key $120 support, awaiting a potential breakout that could propel SOL into its next bullish cycle.

This consolidation phase has built up significant pressure, and the next move could define Solana’s trajectory for the rest of the cycle.

SOL Price Testing Demand

Solana (SOL) is trading at $129.60 after experiencing choppy price action. Volatility and uncertainty drive the market, with SOL testing a local demand zone between $122 and $135.

Despite this, the price movement has a noticeable lack of strength. SOL remains below its 4-hour 200 moving average (MA), which sits at $143.76, signaling weak momentum since its recent high.

For bulls to regain control, the price must break above the 4-hour 200 MA and target local supply at $160. This would be crucial to reversing the current bearish sentiment and setting the stage for a potential rally.

However, if the price falls below the $120 support level, it could trouble investors. Such a breakdown would likely signal the end of the consolidation phase and the start of a deeper correction, potentially driving SOL to lower levels.

Featured image from Dall-E, chart from TradingView