Solana Set to Retest November Lows Following $144 Resistance Rejection, Analysts Remain Optimistic

Solana (SOL) is facing challenges in reclaiming a significant resistance level, leading market analysts to suggest it might retest its November lows. On the other hand, some experts believe the altcoin may soon emerge from its current consolidation phase.

Key Takeaways

Solana (SOL) rejected from a crucial resistance level at $144, leading to a nearly 4% decline.
Analysts suggest SOL may retest November lows while some forecast a breakout due to bullish patterns.
King Arthur highlights the importance of sustaining above $143 for further upward momentum, with targets set for $152 and $171.55.
The current trading price of Solana is $134.9, with attention focused on market behavior around significant resistance and support levels.

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Recent Decline in Solana's Value

Solana experienced a nearly 4% decrease on Friday as it attempted to regain an important resistance area for the second time this week. Since the notable price correction in early November, the cryptocurrency has been fluctuating within the $120-$145 range, including a drop to its local lows three weeks ago.

During a strong rally in the broader crypto market, SOL saw a spike of over 13% from its start-of-the-year price, breaking free from a three-month downtrend and reaching a one-month high of $143.4 earlier this week. However, after being rejected from this upper boundary last Tuesday, Solana now seeks to establish a stable foundation below the $140 mark—a level where it has faced significant resistance in recent months.

Despite this rally, market analyst Crypto Batman forecasts that SOL may retrace towards the November lows as a bullish reversal pattern appears to be taking form on its daily chart. In a post on X, he asserted that the altcoin has been turned away from the strong resistance area, indicating the formation of a local top. He identified the next support zone around $128-$130, coinciding with an unfilled bullish Fair Value Gap (FVG).

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SOL forms a local top. Source: Crypto Batman on X

Moreover, Crypto Batman noted that Solana may be developing an inverse Head and Shoulders pattern since the Q4 corrections. According to his analysis, the chart shows the left shoulder and head were formed during the pullbacks in November and December, with the neckline positioned around the $145 area. The recent rejection could indicate that the right shoulder is beginning to form, which might prompt the price to drop to its late November lows before retesting the neckline, potentially leading to a breakout depending on the confirmation of this pattern.

Analysts' Optimism Toward Solana

Market analyst King Arthur expressed a positive outlook for Solana, suggesting that the altcoin "is finally waking up." He mentioned, "We've been observing this prolonged downward trajectory for some time, and it’s refreshing to see SOL breaking away from that downward channel. This is a significant first step, but we must remain vigilant."

He elaborated that crossing above the $143 level is vital for establishing momentum, which would pave the way to reclaim the $152 level, previously lost during the breakdown on November 13. "If we achieve that, I’d say the uptrend is officially back on track with my target set at $171.55," he affirmed. However, he cautioned that a decline below the $133 mark would suggest the price may not be prepared for further bullish movement.

Meanwhile, analyst Crypto Jelle noted that Solana has struggled to challenge the $200 psychological barrier, remaining below it for several months. He pointed out that the recent price behavior resembles that of BNB, asserting, "It’s starting to feel like BNB. Moving sideways for what seems like an eternity – and then sudden expansion again. Waiting for a similar outcome," he summarized.

At the time of writing, Solana's price stands at $134.9, marking a 2.3% drop on the daily chart.

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