Solana (SOL) Falls Below Important Support Following 8% Decline, Faces Significant Correction Risk to This Level

Solana Prices Dip Amid Market Uncertainty

Recently, Solana (SOL) experienced a notable decline, hitting a new local low as its price slipped below a significant support level for the first time in several months. While some analysts believe that altcoins are just undergoing necessary corrections, others caution that cryptocurrencies might face another serious downturn if they can’t hold onto current levels.

Solana Faces 30% Correction Risk

On Monday, SOL dropped by 8.3%, breaking the lower end of its three-month trading range. This range has fluctuated between $175 and $250 since its breakout in August, where it peaked at $253 during a rally in September.

Since that high, the altcoin has pulled back nearly 35%, failing to reclaim the $200 psychological barrier despite various attempts. Following a drop in early October that saw SOL fall to $168, the price tested the $170-$180 support zone multiple times, bouncing back from there each time.

However, amid recent market volatility—including Bitcoin (BTC) retreating to the $107,000 mark—Solana has dipped below a key support zone, reaching a local low of $165. Analysts are concerned that Solana’s pullback might not be finished, as another major correction is a possibility.

Analyst Ali Martinez pointed out that Solana’s macro range sits between $100 and $260, noting that for SOL to show strength, it needs to recover to the $200 mark, potentially aiming for the top range. He emphasized that if SOL confirmed a decline from the $180 level, it would likely set the stage for further losses. The next support level appears to be close to $158, a key zone that has historically acted as both support and resistance.

Yet, some analysts opine that the next significant support could actually be considerably lower. If SOL fails to bounce back and reclaim $180, it might experience a drop of about 30%, potentially hitting $115.

On a different note, analyst DonAlt stated that it could be prudent to adopt a bearish stance between the current levels and $210, but to act aggressively if SOL successfully breaks through the $210 resistance.

Investors Remain Optimistic About SOL’s Long-Term Potential

In the face of this bearish outlook, some believe that SOL offers a clean retest setup within long-term support. Trader Elite Crypto remarked that SOL’s recent dip seems like a healthy correction following a protracted bull market.

He indicated that the cryptocurrency still maintains an essential upward support zone, which has been a critical rebound point since 2023. Given this perspective, market observers anticipate that Solana’s price may revisit the $158 area before embarking on the next rally. “Overall, I remain bullish on SOL,” he stated.

Additionally, Bitwise CEO Hunter Horsley hinted at a long-term positive outlook for leading altcoins. In a recent post, he noted that the introduction of a SOL stock exchange-traded fund (ETF) by the asset management firm has “opened the bridge to Solana for many investors.”

Notably, a new wave of crypto-based ETFs began trading last week, with SOL-related products garnering $400 million in inflows within the initial four days. Bloomberg analyst Eric Balchunas remarked that the company “outperformed all crypto ETPs by a significant margin in weekly flows.”

“ETF investors tend to have a long-term vision,” Horsley added, suggesting that regardless of the current price fluctuations, there’s an expectation of overall bullish movement in the cryptocurrency market moving forward.