Solana (SOL), which topped $250 in September, fell to $120 with sharp declines.
However, with the recent rally, an updated analysis has arrived for Solana, which has reached the $140 level.
Cryptocurrency analysis firm MakroVision has released its latest analysis for Solana (SOL), stating that the technical outlook for Solana remains weak.
Stating that SOL continues to remain in a tense market environment, the analyst firm said the recovery started with a very weak reaction.
The near-term outlook remains fragile, the firm’s analyst said, adding that the pattern of the past few days suggests a series of falling highs.
As Solana recovers, analysts noted that the reaction to the central support level has remained quite weak, saying the $126-$128 range remains extremely important.
It was stated that a downward breakout of this range would lead to further decline, but on the other hand, a breakout above $145 in the short term would be the first positive signal of a move higher.
Highlighting a rise from $159, the analytics firm said that as long as the price remains below this level, the medium-term trend is down.
“Solana is currently hovering dangerously above one of the most important support levels of the year.
Barring a quick recovery above the fading red downtrend line at $159, the medium-term structure remains clearly bearish.
Only a break above the $159 resistance will be the first bullish signal, potentially opening a rally towards $188 and above.
However, a retest or breakout of the $126-$128 level would significantly increase the risk of a deeper correction.
*This does not constitute investment advice.