- Solana holds critical support near $166 after recent bearish moves, with hopes for a bounce if it reclaims $185 by Friday.
- Santiment reports Solana sentiment is at its lowest since January, raising the likelihood of a potential market reversal.
- If SOL maintains $166 support, a rebound to $185 is possible; failure to hold could push prices down with $177 and $201 as resistance.
Solana’s (SOL) hold the crucial support level close to $166 now after a bearish descent in the last few days. In a recent X post, Jelle shared his technical outlook and the following, stating that SOL recently breached and held below its prior lows but regaining it for the close. This price action presents some hope for a bounce especially if SOL returns to the $185 mark by close of business on Friday.
Solana’s Next Key Move
The analyst is therefore focused on the 3-day and weekly closing prices to determine the direction of SOL. At the time of writing, Solana is trading at $169.65, a 0.45% higher than the price recorded in the last one day. The main attention will be paid to the possibility of Solana to stay above this level and bounce back.
Source: TradingView
According to an analytical platform, Santiment, Solana had arrived at the lowest sentiment since the pronounced retrace on January 20th. Currently, SOL is $169 and this is a concerning signal as it has reached the 3-month chart and traders are getting impatient. On the other hand the high amount of bearishness might indicate that indeed a bounce is nearer.
Source: Santiment
In the past, the market has always fallen in the wrong direction once the crowd reaches this level of bearish sentiment. Although there are never any sure things when it comes to cryptocurrencies of which are considered highly risky assets what this contrarian indicator implies is a higher likelihood that prices will rebound on the contrary. It has been described as a process in which the trader decides to take an opposite position to the dominant trend when most traders are of a different view.
Potential Bounce or Breakdown
In particular, provided that the support level is maintained, the price could bounce back towards $185. On the other hand, if this support is not held, then the token may go down. Resistance levels to the upside are around $177 and $201, with traders maintaining a bullish bias and hoping to get a bullish signal at the aforementioned supports.
In the following days, focus is expected to shift on Solana being slightly below $166 support. It is likely that current support level might be maintained and reversed back to the higher levels in future which means that the token will be in a good position to bounce back. However, if the bearish cycle prevails the short-term outlook for SOL could be a downfall.
