Solana (SOL) is at a critical threshold as it has been testing support levels for a long time with the price pullback, and market analysts are watching the potential opportunities during this period carefully. This significant pullback points to oversold conditions for SOL, while also creating buying opportunities for strategic investors.$SOL
Famous analyst Marty Party stated that SOL’s recent RSI value has reached levels not seen since mid-2023 and emphasized that this is a suitable time frame for investment. While evaluating SOL’s price movements, analysts are drawing attention to potential buying opportunities despite shifts in market sentiment.
Will Solana Price Stabilize at $175 Support?
Solana, which reached $264 in November, has since fallen significantly to $175. This latest decline places SOL at a critical threshold, which could reinforce analysts’ bullish outlook.
Throughout 2024, SOL’s price has historically shown a tendency to recover to the 100-day EMA (Exponential Moving Average), with similar reversals observed in June, July, and October. This current trend is causing traders to speculate that SOL could show this resilience again. Currently, SOL’s price appears to have stabilized at $175, which coincides with the 61.8% golden ratio level of the Fibonacci retracement tool. Historical data shows that price reversals often occur at these golden ratio levels, meaning SOL could find a new bottom at $175 and perhaps even drop to $160.
Despite this technical support, market sentiment remains negative. However, this could create opportunities for investors looking to buy SOL at a discounted price ahead of a potential price recovery. Another important point to note is that the negative sentiment around SOL since November has been decreasing. While the current market situation at this critical support level is uncertain, according to Coinglass data, 82% of Binance’s largest traders are currently long on SOL. While this rate is down slightly from 84% on December 19, the overall market sentiment is still bullish.