The cryptocurrency market has been facing a turbulent week, with Bitcoin leading the way by falling below $90,000 and dragging down other assets with it. One of the hardest-hit cryptocurrencies is Solana, which has dropped below $140. The question on everyone’s mind is whether SOL can rebound in the near term.
The market sentiment plays a crucial role in determining Solana’s movement. The current geopolitical tensions and economic uncertainty have contributed to the overall negative sentiment in the crypto market. However, there has been a recent influx of positive sentiment that could potentially drive Solana back to its previous impressive levels.
Despite the optimism, traders remain concerned about Solana’s performance. The sixth-largest cryptocurrency by market cap has plummeted more than 40% in the last 30 days and 50% from its all-time high of $295 in January. With the ongoing bearish trend, the prospect of a quick turnaround for Solana seems unlikely.
Solana is currently at a critical support level of $138, standing at a five-month low. There are speculations that the asset could consolidate between $138 and $161, but if it continues to decline, it could reach lows of $131. To break through the bearish barrier, Solana will need to surpass the $168 level and turn it into support, potentially reversing the downtrend.
There are factors that could potentially boost Solana’s recovery, such as continued US crypto policy overhauls and the possibility of an ETF for various cryptocurrencies, including Solana. These developments could help drive Solana’s price upward and aid in its rebound.
In conclusion, while the current market conditions are challenging for Solana, there is still hope for a potential rebound. Traders and investors will be closely monitoring Solana’s price movements and market developments to gauge the cryptocurrency’s future trajectory.