The momentum of Solana (SOL) has slowed in the past few days, dropping 23% from its all-time high (ATH) and over 8% in the last day. With the cryptocurrency market retreating, some investors are concerned about the short-term performance of altcoins.
Solana has dropped to its lowest level in a month.
Solana is one of the leading-performing cryptocurrencies in this cycle, outperforming most of the market and making headlines. Unlike most altcoins, this cryptocurrency performed exceptionally well during the pullback in the second and third quarters, staying above pre-bull market levels.
As the fourth quarter begins, Solana's price continues to hover between $110 and $180, breaking out of this range after the market's post-election rally. The momentum of SOL has driven the token beyond its annual high and successfully reclaimed the $200 mark.
The token continued to rise until it reached a new high of $263 on November 23. Since then, Solana's price has hovered between $245 and $220, sparking investor optimism about the altcoin's next 'price discovery' efforts.
Nevertheless, the price of SOL has taken a hit in the past day alongside Bitcoin and other cryptocurrency markets. Solana experienced an 8.7% pullback in the past 24 hours, dropping to the $210 support level before falling below that level.
The cryptocurrency is currently retesting the crucial $200-210 area as support for the first time since breaking through this range, falling below the $205 level on Tuesday morning. Cryptocurrency analyst Altcoin Sherpa may hold a bearish outlook on SOL's short-term performance based on the ongoing price retest.
According to the post, 'the weakness of SOL is very apparent, which is also reflected in the price trend of sol shitcoin.' Analysts explained that the current price trend seems unsatisfactory, indicating that maintaining the $200-210 range is crucial.
If this area cannot be maintained, the price is likely to fall to the pre-election resistance level of $180, which has not been tested as support since breaking through that level over a month ago.
SOL is aiming for higher targets.
Similarly, Crypto Jack predicts that if SOL fails to retest the $200 support level, it could drop to the $180-160 range. However, he considers a decline of over 10% to be an opportunity for investors to 'buy the dip.'
Based on his potential strategy for Solana, the cryptocurrency is expected to rebound to its ATH level and attempt to break through that level. Other market observers pointed out that SOL is currently retesting resistance levels in the weekly and monthly timeframes as support, and as long as Solana can maintain this status, it could rise.
Cryptocurrency analyst Jelle reiterated his $600 target for the cryptocurrency, noting that it has had an 'incredible' performance in the first year of the cycle and 'will be a winner again in the coming months.'
Meanwhile, Bitwise's latest report predicts that SOL could rise over 200% by 2025. The asset management firm's CIO Matt Hougan and research director Ryan Rasmussen believe that the momentum for altcoins is 'only just beginning to strengthen,' forecasting a price of $750 next year.
At the time of writing, Solana is trading at $204, down 8.5% and 3.1% in daily and monthly timeframes, respectively.
