The cryptocurrency market has certainly struggled mightily this week. Bitcoin, the leading crypto shocked the industry by falling below $90,000 and taking a host of assets with it. Among the hardest hit is Solana, which has fallen below $140; but can SOL rebound in the near term?
A lot of its movement will depend on the overall market sentiment. Rising geopolitical tensions and economic uncertainty have seemingly taken a toll on the asset class. However, its reversal could be driven by the influx of positive sentiment that has taken place in recent weeks. The question is, can that truly propel Solana back to its most impressive levels in recent months?
Also Read: BlackRock Speaks on a Solana ETF: Why It May be Bad for SOL
Solana Keeps Falling: Here’s How SOL Can Rebound From $138 Drop
There is no shortage of concern from traders regarding the ongoing performance of Solana. The sixth largest crypto by market cap has fallen more than 40% in the last 30 days, according to CoinMarketCap. Moreover, it dropped a remarkable 50% from its $295 all-time high mark set in January.
All eyes are on whether or not the asset can turn things around in the short term. However, with so much negativity facing a myriad of cryptocurrencies, the prospect does not sound very likely. As Solana’s continued fall has driven it below the $140 mark, is there any hope for SOL to rebound?
Also Read: Solana ETF Gets 70% Approval Odds: Can It Push SOL To $300?
There is always the potential for a near turnaround in the crypto sector, but it is a critical time for Solana. The asset is currently at a crucial $138 support as it stands at a five-month low. There are beliefs that the asset could consolidate between that level and a $161 upside. Moreover, if it continues to drop, it could reach lows of $131.
In order for it to break through the bearish barrier, it will have to breach the $168 level and flip it into support. That could help reverse the ongoing downtrend. It may get a boost from continued US crypto policy overhauls. Alternatively, talk of an ETF for various cryptocurrencies and Solana’s potential to be included could also help drive it upward.