Solana SOL has suffered over the last seven days, seeing its price fall 15% in that period. The asset is down to sub-$130, with analysts fearful that the slump could last longer. Predictions for September for most assets, including SOL, have been bullish. However, selling pressure has run rampant. Fortunately, SOL is now trading above a crucial support level that could be key to its future price action. If this support holds, it could send the token toward new all-time highs.
Solana’s SOL is currently above a crucial support level of around $128. The asset has done well to remain above this price mark when tested in the past, and it must do so to return to the rates seen earlier this summer. There is still a positive outlook on SOL, as has been the case throughout the year even in bearish markets.
Solana SOL Withstands Fall, Stays Above Crucial Monthly Support
Crypto analyst and trader Kaleo recently provided a technical analysis on X. They forecast a potential decline from last week’s local high to the $120-$128 range before a possible surge to new all-time highs. Kaleo’s charts reveal patterns of big gains following a dropoff, which is similar to SOL’s current pattern. The idea is that the asset’s falls are generating more momentum for each rebounding climb, which Kaleo believes will send the asset sky-high.
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For a short-term recovery, SOL needs to reclaim the $140 level. However, if Kaleo’s analysis rings true, SOL could reclaim even higher than that by the weekend if the Bulls take charge. The token’s current trading volume is down in the last 24 hours, resulting in a 2% price drop. However, a boom in activity could spark the asset to begin that steep climb that Kaleo expects.
Reclaiming and holding an exponential moving average of $147.78 can provide a solid foundation to shift the negative price action around Solana SOL. In turn, a more substantial upward move is possible. On the other hand, if SOL fails to maintain the $127 support level, the next significant liquidity level to watch would be around $110. These levels will be crucial for investors to watch to predict the near future of Solana’s native token. The coin has been one of the best performers of 2024 and remains a hyped-up cryptocurrency choice with hopes behind it.