Analyst Predicts Solana Price Could Soar to $190 Soon – But There’s a Catch

Solana (SOL) has recently reached a new multi-month low but is now trying to maintain a significant high-timeframe level as support as the week concludes. While some analysts are optimistic about a bounce for the altcoin, others caution that any potential rally might be short-lived.

Key Takeaways:

Solana is trying to maintain critical support levels after a recent low.
A potential rally could push Solana’s price toward $190, though analysts warn it may not last.
Essential support at $123 is crucial for preventing a significant price drop.
The market is observing a deceleration in price rebounds, which may affect future movements.
The closing of December will be pivotal to Solana's short-term price action.

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Is Solana About to Reach Higher Levels?

On Friday, Solana experienced a recovery, rising by 7.7% toward the $125 area. This positive movement comes after the cryptocurrency suffered a nearly 9% decline on Thursday afternoon as part of a broader market correction, dropping to an eight-month low of $116.

During this downturn, SOL’s price fell below a crucial high timeframe level around the $120 mark for the first time since April but has since seen a recovery. Analyst Crypto Batman commented that the altcoin is not only at a major support level—one that has sustained its price for the past two years—but is also displaying a bullish divergence on the three-day timeframe. He likened this pattern to what was observed before Solana hit a major bottom at the beginning of Q2.

This analysis suggests that Solana may be nearing its bottom, potentially leading to a recovery rally to the macro range high. However, another market analyst warned that while retesting higher levels seems probable, “context matters.”

Analyst Crypto Scient pointed out that SOL’s price is currently positioned at the range lows of its multi-year range, marking the first retest of this area since being rejected from the range highs.

Solana

Solana tests the bottom of its macro range. Source: Crypto Scient on X

Scient elaborated, “One could argue SOL has been on a distribution path for nearly two years now. That’s a valid perspective,” but he added, “[but] range lows rarely break on the first attempt.” He also highlighted that there is considerable liquidity remaining between the $175–$190 levels that “should be reached at some point, even within a broader bearish environment.” Consequently, the analyst believes that a move higher to clear that liquidity before any deeper downside is more sensible.

Will December Define Solana’s Future?

Analyst Rekt Capital emphasized that the $123 horizontal support is the “defining level” that Solana must maintain to avoid a significant drop to multi-year lows. He noted that past rebounds from this support have often led to significant price increases, with moves of 140% and 100%. Yet, each consecutive rally from this level has been weaker, with the latest bounce only achieving a 15% increase.

This trend indicates a “sharp deceleration in upside responsiveness at this level,” which is crucial to consider as the decreasing rebound magnitude might influence SOL’s monthly close. If Solana can close above the macro support, the altcoin will be positioned for what could be a softer rally. However, closing below $123 would significantly alter the outlook, suggesting that distribution has begun and indicating a decline in the strength of this support since the last notable rally that nearly doubled its price earlier this year.

In that scenario, it would start to reflect SOL’s performance in early 2022, when similar price movements preceded “macro relief moves during the initial phase of the Bear Market, including the significant breakdown that occurred at the beginning of that year.”

Ultimately, the analyst warns that it remains uncertain whether the altcoin can finish December above this crucial level and initiate a rebound, or if a breakdown will happen that “accelerates distribution sooner rather than later.”

As of this report, Solana is trading at $126, reflecting a 3.4% decline over the weekly timeframe.

Solana, SOL, SOLUSDT

SOL’s performance on the one-week chart. Source: SOLUSDT on TradingView