Solana Price Nears $130: Understanding the Recent Surge

As the Solana price approaches $126 following a 6% gain on Friday, there is rising optimism surrounding its recovery. This increase comes after a concerning drop below the essential $120 mark, which had raised alarms about a potential downward trend that could lead the cryptocurrency towards the $100 range.

Key Takeaways

Solana price has risen 6% recently, nearing $126 after recovering from a dip below $120.
Key factors include Solana Foundation's initiatives around quantum computing and Mangoceuticals' investment in SOL.
Technical analysis indicates a prevailing downtrend with significant resistance ahead and essential support levels identified.
Market dynamics could lead to further declines if critical support levels are breached, with potential dips toward $100.

Solana price

Solana's Recovery Highlights

Chris MacDonald, an analyst at The Motley Fool, has pointed out two primary factors that are contributing to Solana's renewed momentum. A significant driver is an initiative by the Solana Foundation, which is currently examining if its network can withstand threats posed by quantum computing.

According to Bitcoinist, the Solana team is collaborating with Project Eleven, a firm specializing in post-quantum cryptography, to test a quantum-resistant infrastructure after conducting a thorough risk assessment.

Another critical factor behind the price increase is Mangoceuticals, a health and wellness company that announced plans to invest $100 million in acquiring and holding SOL tokens.

While these developments are promising, some experts warn that Solana’s price is currently experiencing a "clean corrective structure," indicating caution among investors.

Technical Indicators Suggest Possible Downtrend

From a technical analysis standpoint, the 50-day simple moving average (SMA) is around $143, significantly higher than current trading prices, and the 200-day SMA is even further at approximately $170. This data suggests that there may be a prevailing downtrend instead of a healthy market consolidation.

In the short term, the 20-day exponential moving average has also turned down near $133, rejecting previous attempts to recover. Analysts suggest that until Solana can consistently trade above the low $130s, any price rebounds should be viewed as temporary counter-trend movements.

Immediate support is found just under current levels at $125, with critical support levels at $121–$120 and an additional demand zone near $110. A more substantial decrease could drive prices toward the high $90s. Should liquidations escalate, projections indicate a potential dip towards around $80, as noted by NewsBTC on Thursday.

The market previously recorded an eight-month low near $116.9. A close below this level could likely push the Solana price toward the key psychological barrier of $100.

On the upside, Solana may face initial resistance within the $133–$138 range, with stronger resistance observed between $144 and $147, which could hinder any short-term recoveries. To encourage a more significant recovery, Solana will need to break through this upper resistance level decisively, ideally backed by increased trading volume, to set its sights on prices between $160 and $165.

Solana price The daily chart illustrates SOL’s price recovery on Friday. Source: SOLUSDT on TradingView.com