Solana (SOL) Price Risks Drop Below $200 After Losing Key Support, Analyst Warns

Amid the latest market volatility, Solana (SOL) has misplaced a vital space for the primary time in over every week, main some analysts to forecast a possible drop towards the $200 assist and under within the coming days.

Solana Pullback Eyes $200 Retest

Solana fell from the $225 space and recorded a 6.6% intraday retrace under the $210 degree for the primary time in two weeks. Notably, the cryptocurrency has been buying and selling inside the $210-$245 ranges over the previous month, briefly shedding this vary through the late September pullback.

As “Uptober” arrived and the general crypto market recovered, the altcoin bounced from the latest lows, reclaiming the mid-zone of its native value vary. Over the previous week, SOL traded inside the $220-$235 space, retesting each the higher and decrease boundaries of this zone all through this week’s unstable market efficiency.

Multiple market watchers warned that shedding $215-$220 space may decide whether or not SOL’s short-term rally was in danger. On Friday morning, the altcoin misplaced this important zone, hitting a one-week low of $207.

Analyst Crypto Batman forecasted that Solana would possible head decrease earlier than bouncing, highlighting two key assist areas. He instructed that the altcoin’ may retrace deeper into its Bullish Fair Value Gap (FVG), between $210-$220, which beforehand served as a key resistance degree.

However, if the worth continues to fall, he pointed out {that a} retest of SOL’s two-month ascending trendline, presently across the $200 mark, could be attainable. This trendline was examined as assist in late September, when the altcoin fell to the $190 degree.

Similarly, Crypto analyst Man of Bitcoin had affirmed that holding the $216 degree was essential to protect a bullish state of affairs wherein the cryptocurrency rallied towards the $270 with out main pullbacks.

The analyst cautioned that shedding this space would invalidate the bullish setup and certain push the worth down towards the native vary lows, probably risking a drop to the $200 barrier.

SOL’s Make-Or-Break Level

Meanwhile, market watcher Follis lately stated that SOL has “one of many cleanest” high timeframe charts out there. He famous that Solana’s 100-day Exponential Moving Average (EMA) indicator within the day by day chart holds “the important thing.”

Notably, this indicator, currently sitting across the $200 space, has been examined as assist and bounced from every time the cryptocurrency has failed to interrupt a serious resistance degree since August.

Based on its latest efficiency, if the altcoin holding the EMA100 on the day by day timeframe may see a rebound and goal the vary highs. On the opposite, if this degree is misplaced, the cryptocurrency dangers falling to the September lows.

Despite the short-term correction, some analysts stay optimistic about SOL’s end-of-year rally, suggesting that it’s going to proceed its path to new highs after the retrace. “$320 stays the goal,” Trader Koala affirmed, “Pullback first although.”

As of this writing, Solana is buying and selling at $205, a 12.1% decline within the weekly timeframe.