Solana in Danger: Will SOL Plunge Below $120?

cryptonews.net 06/07/2025 - 11:03 AM

Solana Price Analysis and Predictions

Solana (SOL) has long been a prominent altcoin in the crypto market, renowned for its fast blockchain and vibrant DeFi and NFT ecosystems. In 2025, SOL experienced significant volatility, with prices fluctuating around $147. Investors are watching whether it can rise to $200 or fall back to support levels near $120. This analysis explores SOL’s price structure, key indicators, and momentum.

Price Prediction: Current Analysis of SOL

SOL/USD Daily Chart – TradingView

As of now, Solana’s price is around $147.43. A review of Heikin Ashi candles indicates a slowdown in the previous uptrend, showing short bodies and wicks, which signifies market indecision. The Relative Strength Index (RSI) is at 47.60, placing SOL in a neutral zone, suggesting that the market is awaiting a catalyst.

Support and Resistance Levels

Key resistance is observed around $160, which has been a barrier for price increases. On the downside, there’s support between $140–$142, where SOL has bounced multiple times. Below that, support is visible around $120. If a daily candle closes under $142, a 15-20% drop towards $120 could occur:

  • Potential Drop: $147−$120 = $27
  • Percentage Drop: (27/147)×100 ≈ 18%

Momentum Indicators

The RSI is just below 50, indicating weak bullish or bearish momentum, with a recent lower high signal indicating diminishing buying strength. If the RSI drops below 40, accelerated selling may follow.

Analyzing the Uptrend

Currently, the broader structure shows that Solana is in a sideways range after a peak near $200 earlier this year. Recent price action reflects lower highs and lows, hinting at a minor downtrend within this range. A daily close above $160 with strong volume is necessary to confirm a bullish trend.

Future Predictions for SOL Price

Should SOL price break above $160, the next targets may range between $180 and $200, indicating a 22% upside from current levels:

  • Potential Gain: $180−$147 = $33
  • Percentage Gain: (33/147)×100 ≈ 22%

The risk-to-reward ratio favors buyers if SOL holds above $142 while breaking $160 with momentum.

Price Direction and Trading Strategy

In summary, caution is advised. If SOL maintains above $142, buyers might target $160 and $180. Failure to hold this support may lead to a drop towards $120, and possibly $100 if panic selling occurs. The RSI and Heikin Ashi indicators do not indicate a clear market direction yet.

Traders should closely monitor the $142 level and watch for RSI dips below 40 for signs of stronger selling. Conversely, a daily close above $160 accompanied by volume would renew bullish prospects for $180–$200. Until then, Solana remains range-bound, emphasizing the need for prudent positioning and stop-loss measures.

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