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Solana (SOL) faces a critical juncture as its price pullback tests long-standing support levels; market analysts are watching closely for potential opportunities.
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This significant pullback has drawn attention due to SOL’s oversold conditions, suggesting a possible buying opportunity for strategic investors.
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Marty Party, a well-known analyst, stated that the SOL’s recent daily RSI reached levels not seen since mid-2023, indicating a favorable moment for investment.
Assessing SOL’s performance as it tests key support levels, analysts advise on potential buying opportunities amid market sentiment shifts.
Will Solana’s Price Hold at $175?
Since reaching a peak of $264 in November, Solana has experienced a significant decline, dropping to a low of $175. This recent downturn has placed SOL at a critical junction as it tests key confluence areas—a scenario that could reinforce the optimistic outlook put forth by analysts.
Throughout 2024, SOL’s price has historically rebounded at the 100-day EMA (Exponential Moving Average), with similar patterns observed in June, July, and October. This prevailing trend has piqued interest as traders speculate whether SOL can replicate this resilience once more.
Source: SOL/USDT, TradingView
At the time of writing, SOL’s pullback appears to have stabilized at the $175 mark, coinciding with the golden level of 61.8% on the Fibonacci retracement tool, calculated from September’s lows. Historical trends indicate that price reversals often occur at the golden ratio level, which suggests that SOL might find a new bottom around $175, with a potential deviation down to $160.
Despite this technical support, the prevailing market sentiment remains bearish, which could present a buying opportunity for investors seeking discounted SOL ahead of a potential rebound.
Source: Santiment
Notably, this trend marks the first occurrence of negative sentiment surrounding SOL since November. Current market positioning amidst this key support level reflects uncertainty; however, data from Coinglass reveals that more than 82% of top traders on Binance are currently holding long positions in SOL.
Although this figure indicates a slight decline from the 84% level reported on December 19, the overall sentiment still leans towards bullish, particularly regarding SOL’s potential recovery prospects.
Source: Coinglass
Conclusion
In summary, Solana’s struggle at the $175 support level highlights a critical phase for investors. As the market sentiment exhibits volatility, the potential for price consolidation around this key area may present lucrative entry points for long-term holders. Analyst insights suggest that if SOL can establish a firm base at this level, it could lay the groundwork for a significant recovery in the future.
