Solana (SOL) is trading at $123.04 today, showing a mild recovery after recent pullbacks. The token recorded a 24-hour trading volume of $6.78 billion, while its market capitalization stands at $69.39 billion, giving Solana a 2.35% share of the total crypto market. Solana’s token saw a rise of 1.09% over the past day.
Breaking $120 Could Trigger $75 Drop
Market focus is still on the $120 support level, which has become a critical point for Solana in the short term. According to a recent post by crypto analyst Crypto Patel, losing this level could expose SOL to a deeper decline.
He predicted that a firm break below $120 could make way for $75 before some good gain is regained. However, he also reiterated that $500 is still the ultimate goal, as market price actions hardly ever progress in a straight line.
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Upside Target Set Near $125–$126 Range
After a corrective swing from the recent top, Solana is trading in a zone where it is believed to make a decision. Although it is being seen that traders are trying to make a positive swing in the short term, the overall position of Solana in the chart is not clear.
Technically, SOL has started exhibiting signs of strength. This is considering that the price has moved above a descending line drawn from the last peak, indicating a short-term change in market direction. Moreover, a double bottom has developed around the price of $121-$122, indicating high demand every time the market has tested this level.
Currently, the most significant area to focus on is the $120 support. However, this area has already been tested a number of times and is still intact. As long as SOL is above the support, breakouts to the upside are still feasible.
If support is maintained and the price continues to move upwards, Solana may target the $125-$126 region. This acted as a resistance level in the past and could witness some selling activity as a result.
On the flip side, a breakdown below $120 would damage the existing formation. A clear break below the level would invalidate the double bottom formation and could result in a more pronounced pullback, consistent with warnings of moving towards lower price regions.
For now, Solana stands at a crossroads, with charts likely to decide whether the next major move points lower first, or begins the longer journey higher.
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