Despite the volatility in market conditions, Solana (SOL) has strong growth potential as it tests key resistance levels. Currently, SOL is up 14%, but analysts are keeping a close eye on the resistance at $235.
According to COINOTAG data, breaking the $245 liquidity level could shift the market dynamics in Solana’s favor. The latest developments in SOL’s price action are aimed at breaking through critical resistance levels and triggering a bullish trend.
Solana (SOL) has seen a remarkable recovery in December, retesting the key support level at $210 and rising by 14%. This recovery comes after a major drop since SOL reached its all-time high of $264. This highlights the volatility that often defines the cryptocurrency market. Analysts are warning that a breakout above $235 could trigger a change in the current downtrend. While the Relative Strength Index (RSI) is in neutral territory, there is still uncertainty as to whether this recovery will continue.
Technical analysis suggests that the downward channel that SOL has been moving through continues. Any attempt to move higher is met with resistance, especially around $235. Investors are evaluating patterns at these levels, suggesting that if SOL fails to break above $235, the price could fall back to $210. Market sentiment suggests that continued pressure in this range could create increased selling pressure and make it difficult for SOL to recover.
According to the latest data, investors are particularly focused on liquidity levels around $245, which could be critical for a potential breakout. However, heavy short positions around $220 could pose challenges if SOL experiences downward pressure. According to the reset heatmap, these levels are key elements shaping SOL’s short-term trading strategies.
Despite the current market volatility, leading asset management firm Bitwise remains optimistic about Solana’s long-term potential, with the firm setting a price target of $750 for SOL by 2025. Fundamental growth factors and increasing market acceptance could significantly strengthen SOL’s market position.
