Solana Rally Fades: Key Levels to Watch for SOL

Solana Rally Fades- Solana Hits $180 but Faces Major Retracement

Solana Rally Fades– Solana [SOL] recently saw a major rally, surging by 24.40% in a single day to reclaim the $180 level, recovering losses from the previous ten sessions. Analysts even predicted the next key resistance point to be around $213. This bullish momentum was driven by Trump’s endorsement of Solana’s inclusion in the Strategic Reserve, leading to a 480% spike in trading volume, reaching $14 billion.

However, the upward momentum was short-lived. After the initial surge, Solana [SOL] experienced a sharp retracement, dipping below its pre-election levels. A significant demand zone formed at $130, triggering a 46% recovery in less than a week, pushing SOL back to $180.

Yet, at the time of writing, Solana [SOL] has dropped nearly 20% again, trading just below $140. The declining volume suggests weakening bullish sentiment, and sell-side pressure has risen as traders lock in profits. Market uncertainty over altcoin inclusion in the Strategic Reserve has further fueled hesitation.

Can Solana Confirm a Breakout?

From a technical standpoint, Solana’s inability to establish a solid support base on the 1D chart raises concerns about its ability to maintain an uptrend. To confirm a breakout beyond the $200 mark, SOL must reclaim the $180 level and establish higher lows. However, slipping below $170 could shift the short-term outlook, increasing the risk of further retracement.

Spot Accumulation and Market Sentiment

Despite the prior rally, spot accumulation for Solana [SOL] remains weak, with exchange inflows far outpacing outflows, which signals increased selling activity. The dip below $180 coincided with net inflows of $195.28 million, the largest since January. However, open interest (OI) rose by 15.80%, indicating growing speculative activity. This imbalance between speculation and actual demand could lead to a potential liquidation cascade if the trend continues.

In summary, while Solana [SOL] has experienced impressive volatility, the outlook remains uncertain as it faces resistance at key levels and the risk of further retracements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.