The Solana price is trading slightly below $200 following the recent market crash. However, SOL has shown remarkable resilience compared to other altcoins, with Ethereum down 15% in the last 24 hours while Solana only dropped 4.5%.
Crypto analyst Ali Martinez has spotted some worrying signs for Solana holders. His technical analysis shows several key Fibonacci retracement levels that traders are watching closely – $138.09, $169.71, $179.63, and $204.04. Right now, SOL is hovering near the 0.618 Fibonacci level at $204.04, which typically acts as strong support in bullish markets but could become resistance if broken.
The SOL price is also moving in an upward channel with clear trendlines. The lower boundary of this channel sits right at $191, which Martinez flags as a crucial support level. If Solana drops below $191, we could see a sharp decline to $138.
This is it! If #Solana $SOL fails to hold above $191, a drop to $138 could be imminent. pic.twitter.com/vwJzHwCMHI
— Ali (@ali_charts) February 3, 2025
Recent price action hasn’t been encouraging. The latest candles show sellers taking control in the short term. While previous dips below $191 saw quick recoveries as buyers stepped in, repeated testing of this support level makes a breakdown more likely.
What Could Happen Next for Solana?
There are two main scenarios playing out. If SOL manages to hold above $191 and regain momentum, it could climb back to $220 and possibly $240. However, if it breaks below $191, Martinez warns of a potential drop to $138 – a level that lines up with both Fibonacci support and historical price patterns.
Despite these concerning technical signals, Solana’s ecosystem remains active. The network’s resilience during recent market turbulence suggests it still has strong backing from investors and developers. While the short-term price action looks shaky, calling Solana “dead” seems premature given its continued adoption and recent development activity.
Read also: Time to Buy as Crypto Prices Dip? 3 Underrated Altcoins Ready to Skyrocket in February
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