As the crypto market recovers, Solana (SOL) has bounced from a major level trendline and momentarily reclaimed a key horizontal level. Some analysts have signaled that a retest of a crucial short-term resistance could be coming, while others have warned that a breakdown to new lows remains possible.
Related Reading
Solana Bounces From Two-Year Trendline
On Friday, Solana bounced 10.3% to break past the $85 area for the first time in three days. The cryptocurrency has been hovering between $78-$88 over the past week, briefly falling to $67 during last Thursday’s correction.
SOL lost the mid-zone of its local range after recent market volatility, falling below $80 on Thursday. However, Today’s rebound has sent the altcoin above these recently lost levels, setting the stage for a potential recovery.
Amid this performance, market observer Daan Crypto Trades highlighted that the cryptocurrency has reclaimed the key $80 level, which has historically served as major resistance and support.
To the trader, the Solana must hold above this area and form a base above it before “watching for a low-timeframe market structure break back to bullish.” Analyst Ali Martinez observed that sustained buying pressure could push SOL’s price toward the $88 level, not seen since the start of the week.
The altcoin has been unable to break above this level since last week’s breakdown, becoming a key short-term resistance area. A breakout from this level could open the door for a retest of the $90-$96 zone, where the April 2025 lows are.
Meanwhile, Crypto Batman noted that Solana is retesting its two-year descending trendline in the weekly timeframe, located around the recent lows. The chart shows that the macro trendline has been holding since early 2024 and has been tapped multiple times throughout the cycle.
As the analyst explained, “Over the past 2 years, every time the price touches this level, a massive reversal occurs.” During this period, it has also marked the bottom of each major correction, with the latest retest taking place in Q2 2025 and leading to the following quarter’s rally.
SOL Breakdown Still Coming?
Despite the bullish outlooks, other market watchers have shared potential bearish forecasts for Solana if momentum weakens. Altcoin Sherpa warned that SOL could drop to $50 if selling pressure pushes the price below a crucial area.
The chart shows that after losing the 200-week Exponential Moving Average (EMA), around the $121 mark, and the April 2025 lows, the key area to hold is the recently visited local range lows.
As the analyst displayed, if the cryptocurrency fails to hold the $77-$78 price area, the next major historical support sits near the November 2023 breakout area, around the $51 mark.
Market watcher Crypto Bullet suggested that Solana’s bottom may not be in yet, arguing that “those who bought BTC above $80k and SOL above $120 must stay trapped for a year or two.”
Related Reading
He affirmed that “returning to those levels anytime soon doesn’t make sense,” as the cryptocurrencies are in their markdown period.
In an X post, he emphasized the market cycle phases, pointing out that the accumulation phase occurred between 2022 and 2023, while the distribution phase occurred between 2024 and the start of 2026. Based on this, the analyst’s chart shows that SOL could potentially find a bottom around the $40 area.
As of this writing, Solana is trading at $84.17, a 2.5% decline in the weekly timeframe
Featured Image from Unsplash.com, Chart from TradingView.com