As the crypto market recovers, Solana (SOL) has moved away from the major trendline level and temporarily found an important horizontal level. Some analysts have signaled that a retest of key short-term resistance may be coming, while others have warned that a new downward spiral is still possible.
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Solana Jumps the Line for Two Years
On Friday, Solana jumped 10.3% to pass the $85 level for the first time in three days. The cryptocurrency has been hovering between $78-$88 for the past week, briefly dropping to $67 during last Thursday’s correction.
SOL lost the middle of its local list after the recent market volatility, falling below $80 on Thursday. However, today’s rebound sent the altcoin above recently lost levels, setting the stage for a possible recovery.
During this performance, market watcher Daan Crypto Trades highlighted that the cryptocurrency has recovered the key $80 level, which serves as a resistance to historically significant support.
For the trader, Solana should hold above this area and build a base above it before “watching the lower-term market formation turn bullish.” Analyst Ali Martinez noted that continued buying pressure may push the price of SOL to the $88 level, which has not been seen since the beginning of the week.
The altcoin has not been able to break above this level since last week’s breakout, becoming an important short-term resistance area. A break from this level could open the door to a retest of the $90-$96 area, which is the April 2025 low.
Meanwhile, Crypto Batman noted that Solana is retesting its two-year downtrend during the weekly timeframe, located at recent lows. The chart shows that the major trend line has been holding since early 2024 and has been tapped multiple times throughout the cycle.
As the analyst explained, “In the last 2 years, every time the price touches this level, a major reversal occurs.” During this period, it also noted down each major correction, with the latest reassessment occurring in Q2 2025 and leading up to the next quarterly meeting.
SOL Breakdown Coming?
Despite the positive outlook, some market watchers shared potential bearish forecasts for Solana if momentum weakens. Altcoin Sherpa warned that SOL could drop to $50 if selling pressure pushes the price below a critical area.
The chart shows that after the loss of the 200-week Exponential Moving Average (EMA), around the $121 mark, and the decline of April 2025, an important area to be held is the decline of the recently visited area.
As the analyst pointed out, if the cryptocurrency fails to hold the price area of $77-$78, the next main historical support sits near the resting point of November 2023, around the $51 mark.
Market watcher Crypto Bullet suggested that Solana may not be here yet, arguing that “those who bought BTC above $80k and SOL above $120 should remain locked in for a year or two.”
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He confirmed that “returning to those levels anytime soon does not make sense,” as the cryptocurrency is in its downtrend.
In X’s post, he emphasized the phases of the market cycle, revealing that the accumulation phase occurred between 2022 and 2023, while the distribution phase occurred between 2024 and the beginning of 2026. Based on this, the analyst’s chart shows that SOL could find a low in the $40 area.
As of this writing, Solana is trading at $84.17, down 2.5% on the week.
Featured image from Unsplash.com, Chart from TradingView.com
