Solana (SOL) is currently trading at a crucial demand level near $163, following a retrace from local highs around $183. This price represents a critical support area that could determine the direction of SOL’s upcoming price action. Losing this level could signal a deeper correction, intensifying selling pressure and potentially pushing SOL to retest lower support levels.
However, top analyst Daan shared a technical analysis suggesting that if SOL can hold this “green zone” around $160, it could pave the way for a rebound. Daan notes that in the most optimistic scenario, SOL could maintain this support and start a gradual climb, ultimately aiming to test the downtrend line that has kept it in check. This setup would keep SOL’s bullish structure intact, creating a potential entry point for investors eyeing a bounce.
With the broader crypto market showing volatility and Solana facing this pivotal level, the next few days will be crucial. Traders and investors are closely watching to see if this demand zone can support a reversal, potentially leading SOL back toward recent highs.
Solana has managed to hold above the key support level around $160, despite recent market volatility and uncertainty. This level is crucial for SOL’s price structure, as it acts as a strong demand zone that could serve as a foundation for the next upward move. Crypto analyst Daan recently shared his perspective on X, revealing that the “most bullish case” for SOL would be to hold this “green zone” around $160, allowing it to gradually grind back up toward the descending trendline that has capped recent gains.
In Daan’s view, the next attempt at this trendline could likely result in a successful breakout, potentially pushing SOL’s price above $200. He suggests that waiting for confirmation of this breakout could be a sound strategy for cautious investors, as there remains ample room for upside even after a confirmed reversal. His analysis highlights a confident outlook on SOL’s potential recovery, viewing this accumulation zone as a promising buying opportunity.
However, Daan also acknowledges the downside risk. If SOL fails to hold above the $160 level, a deeper correction could follow, potentially driving SOL to test lower support levels.
Currently, Solana is trading at $163 after tagging the 4-hour 200 exponential moving average (EMA), a critical indicator of short-term strength. Holding above this EMA signals a bullish outlook for SOL, suggesting that buyers are stepping in to support the price at this level. If SOL can maintain momentum above the 200 EMA, it could build a foundation for a potential rally to new local highs, possibly challenging the recent peak around $183.
Despite this, the $160 level remains a crucial support area. Losing this support would likely trigger significant selling pressure, potentially driving SOL down to the $150 range, where further demand may emerge. This zone would be closely watched by investors looking for accumulation opportunities, as a dip could provide favorable entry points for long-term holders.
In contrast, a strong push above the current demand level would confirm renewed bullish momentum, paving the way for SOL to target and possibly surpass recent highs. As SOL hovers around this key technical zone, traders will be watching for any decisive movement that could signal the next direction, whether it be a continued uptrend or a retracement to lower demand levels.
 holds crucial support at $160 amid market volatility, hinting at a potential rebound and bullish momentum. Key levels and trends analyzed.){kind=link}