Solana (SOL) is showing slight upward movement, trading at $83.49 after gaining 0.76% over the past 24 hours. Solana is still witnessing strong trading activity, with $4.48 billion in trading volume in the past 24 hours. The cryptocurrency is currently accounting for 2.07% of the total cryptocurrency market capitalization, which is $47.80 billion.
Despite the recent uptick, market observers suggest that Solana is still moving through a correction phase following its earlier rally. However, analysts have indicated that Solana is still in the distribution phase. This phase is often seen before the next major directional move develops.
According to insights provided by Crypto Patel, analysts have indicated that expectations of witnessing a rally towards $1,000 in the near term may not be realistic. Analysts have indicated that Solana is likely headed towards the $60-$65 Fibonacci retracement zone.
The key levels are now clearly defined, with the support level at $70 being critical. If the Solana cryptocurrency falls below this level, there is likely to be more downward pressure, which could lead to the cryptocurrency eventually touching the $50 mark.
Analysts are also indicating that the cryptocurrency could dip below the $60 mark, which is a liquidity zone where the cryptocurrency could dip to pick up pending orders.
Also Read | XRP Holdings Rise as Whales Expand Positions Between $1.2–$3
Technical analysis has also shown that the Solana cryptocurrency could dip to the $60-$65 mark, which is the 78.6% Fibonacci retracement level of the previous accumulation base. This is considered a critical level, which is likely to act as a support zone.
The general feeling in the market is that while many people are focused on achieving the ambitious target prices, experienced players are likely to wait until the prices dip to the lower zones before they start buying the cryptocurrency.
This is likely to act as a correction mechanism, which could eventually lead to the cryptocurrency touching the support levels before the next rally.
The outlook for the Solana cryptocurrency is positive in the future. Analysts are indicating that the cryptocurrency could eventually target the $500-$1000 mark in the future.
However, in the near future, the cryptocurrency is likely to be affected by the ability of the cryptocurrency to stay above the support levels or continue to dip further before the rally is expected to start.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read | Dogecoin Slides as Liquidations Spike and Support Weakens
