Solana’s Critical Support Zone

Solana is trading below a crucial support zone, and from here, its price could move in either direction.

Given the market context, is a deeper pullback next, or will the bulls seize the dip?

After shedding 5% of its market value, Solana (SOL) is hovering near a critical support zone – one that has historically fueled strong rebounds toward the $250-$260 range – a 35% rise from its current price.

This support zone has sparked strong rebounds in the past, and with a 65% jump in volume, now exceeding $2 billion, traders may be expecting a repeat.

The SOL/BTC pair mirrors a similar pattern from the last cycle, where a bullish reversal pushed Solana up by 65% to $270 in just two weeks. However, the TRUMP memecoin launch heavily influenced this move, causing a 19% single-day surge in Solana.

While a 35% rebound seems viable amidst Bitcoin’s consolidation, altcoin season talk, and strong volume backing, it remains too early to declare.

Solana at Crossroads: Rebound or Further Decline?

Currently, Solana is seeing robust buying interest in the futures market, with Open Interest (OI) up 8.37% at $5.85 billion. Over $14 million in longs were liquidated in 24 hours, aligning with SOL’s 2.65% drop. Despite liquidations, Solana remains far from de-leveraging, as traders take high risks on a potential rebound.

According to AMBCrypto, this strategy might backfire if spot trading doesn’t surge. Binance data indicates three consecutive days of sell orders. Unless this shifts to buy-side pressure, reaching a $180 bottom could be challenging. A pullback to $160 is more likely if long squeezes aren’t controlled.

With high-risk sentiment dominating the derivatives market, caution is essential. As discussions around a 35% rebound to $250 circulate on social media, the reality suggests more days of heavy liquidations. Traders risk significant losses, making any rebound for Solana still a long way off.