Solana’s Price Dips Below Key Level at $120: Is a Reversal Coming Soon?

• Solana Tests Critical Support
  Solana is currently testing the support level of $120.12 after experiencing a 5.01% drop.
  • Possible Bounce
    A rebound off the Ichimoku Cloud could drive Solana’s price towards $150-$160.
  • Further Decline Risks
    If the support at $120.12 fails, a decline towards $100 could ensue.

Solana (SOL) has witnessed a notable drop, reaching $120.12, which represents a 5.01% decrease. As of March 2025, the weekly chart indicates that Solana is at a key support level, positioned at the lower edge of the Ichimoku Cloud. This dip suggests a potential consolidation area before a possible reversal. Maintaining the $120.12 support is crucial in avoiding a deeper downturn, as further declines may approach the next significant support levels.

> $SOL weekly finally went for the bottom of the cloud
> — Cantonese Cat 🐱🐈 (@cantonmeow) March 11, 2025

Price Action and Ichimoku Cloud Analysis

According to the chart, the Ichimoku Cloud serves as an essential guide for Solana’s price movements. Recently, the price dipped below the Cloud, typically indicating a bearish trend. However, testing the lower portion of the Cloud is significant. If this level holds, it may suggest readiness for a rebound towards a return into the Cloud, signaling a potential trend reversal. Conversely, falling further below the cloud’s support zone raises the likelihood of more downside risks, with the next support level hovering near $100.

Solana’s recent downturn might represent a cleansing phase, where the market eliminates weak positions. This cycle is standard in markets, where tokens with rapid appreciation undergo a consolidation phase. Testing a robust support zone at the lower cloud may indicate Solana’s potential recovery if overall market sentiment turns positive. Although there has been volume decline during the downturn, the broader sentiment around Solana remains relatively stable, hinting at a possible strong rebound opportunity.

Outlook and Potential for Reversal

The current price of $120.12 marks a crucial point for Solana. A bounce from the cloud’s lower level could lift the price back into the Ichimoku Cloud, possibly targeting the $150-$160 range. However, failure to maintain this support could lead Solana back towards $100, where additional support is expected to arise. The upcoming weeks are pivotal in deciding if Solana can regain bullish momentum or if the market will experience further consolidation or declines.