As Solana (SOL) attempts to reclaim a crucial level, a market watcher forecasted a massive rally for this quarter. However, some analysts suggested that the cryptocurrency will retest the range lows soon.
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Solana Nears Crucial Level
On Tuesday, Solana surged 9.6% from the recent lows, driven by the start of Solana Mobile’s global shipments of the Seeker, its second-generation Web3 smartphone, to over 50 countries.
The news propelled the altcoin to a multi-day high of $171, fueling bullish sentiment among investors before its price retraced to the mid-zone of its local range. Notably, SOL has been hovering between the $140-$180 range since the April-May breakout, attempting to reclaim the local high for the past three months.
During the June correction, SOL momentarily lost its local range lows, retesting the $120-$130 zone as support. However, the cryptocurrency reclaimed its range amid the July rally, briefly breaking out of the upper boundary and hitting a five-month high of $206 two weeks ago.
Since then, Solana has seen a 25% correction from the highs to the mid-zone of its local price range, currently trading between the $160-$164 levels. Amid its recent performance, analyst Ali Martinez highlighted SOL’s most crucial levels, based on the UTXO Realized Price Distribution (URPD) indicator.
According to the chart, the key support area for the altcoin is around the $165 mark, where the largest supply cluster is with 44.4 million SOL, or 7.42% of the supply. As a result, Solana must reclaim the $165 level soon, or it will risk turning this key level into a key resistance, leading to further downside.
Nonetheless, if this level is reclaimed, then the altcoin would have to retest the crucial resistance levels around $177 and $189, where investors have also accumulated 27.6 million and 23.6 million SOL, respectively.
SOL Preparing For The ‘Real’ Run?
Analyst Crypto Jelle highlighted Solana’s recent price action, asserting that SOL is “quietly trending higher” with higher lows and turning resistance levels as support.
The market watcher forecasted that Solana would reach a new all-time high this quarter, as he doubts “the train stops anytime soon” once it finally breaks out of the $200 resistance.
Meanwhile, Crypto Batman suggested that the altcoin will see another correction soon. To the analyst, Solana could have a 10% drop to its four-month ascending support line, which sits around the $150 level, before “the real move.”
Per the chart, the cryptocurrency has bounced from this support line twice, in April and June, before rallying to local highs during the May and July price breakouts.
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Similarly, analyst Ted Pillows asserted that SOL could see a significant rally this year despite the recent underperformance, as network activity remains strong. He predicted a 10%-15% correction, affirming that “a dip towards $140-$150 before reversal is highly likely to happen.”
As of this writing, Solana is trading at $$163, a 3.3% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com