Solana’s Price Analysis

Key Support Level at $139

Solana’s price recently tested the crucial support level of $139, a significant point associated with previous trend changes. A break below this level may indicate deeper corrections, while maintaining it could lead to growth.

At the time of writing, Solana (SOL) was evaluating this critical price point, its aggregated cost basis, which has held importance historically. In 2022, Solana fluctuated around this threshold for five months before falling below it, resulting in a lengthy downtrend that only reversed in October 2023.

As Solana reexamines this key level, analysts monitor whether it can remain above $139 or if a similar downward trend may occur. Failure to maintain this support could signal further corrections, while a successful hold may reflect potential future growth.

SOL at $139: A Make-or-Break Level

The aggregated cost basis of $139 is more than a psychological threshold—historical trends suggest it serves as a pivotal point for defining market trends. In 2022, SOL stayed near this level for five months, struggling to maintain stability before breaking below, leading to a long downturn that only reversed recently.

Data from Glassnode indicates that continued dips below this mark have previously instigated extended bearish periods, whereas recoveries above it have sparked significant rallies. Should SOL manage to stay above $139, it could lay the groundwork for accumulation and potential upward movement.

What Happens If SOL Falls Below $139 Again?

Should Solana breach $139, historical data indicates an increased risk of sustained downsides. The breakdown in 2022 caused a deep correction that lasted nearly a year, only followed by a market recovery.

The realized price indicator reflected that movements beneath $139 frequently matched prolonged consolidations or lower re-accumulation areas. If SOL falls below $139 again, key downside targets around $100 and $125 may emerge, coinciding with previous buying activity from late 2023. A significant drop below $139 could also undermine investor confidence, possibly triggering cascading liquidations. For Solana to avert a repeat of the 2022 downtrend, bulls must actively engage at this critical support level.

Can SOL Stabilize, or Will It Tumble Again?

Currently, Solana is trading below $139 at $131.54, which raises concerns of further declines. Technical indicators suggest a potential weakness, with the RSI at 24.98, firmly within the oversold zone, hinting at possible short-term relief yet indicating extreme bearish pressure.

Further, the 50-day and 200-day SMAs at $201.55 and $183.94 indicate that SOL is trading significantly below these critical trend indicators, reinforcing a long-term bearish outlook. If it fails to reclaim $139 soon, more declines toward $125 and $100 could be likely.

However, should trading volume increase at these levels, SOL might attempt a rebound. For now, market sentiment appears fragile, placing bulls in a challenging situation.