Solana Faces Critical Test at $135: Recovery Hinges on Support Confirmation

• Solana is currently testing critical support at $135 amid a strong ascending trendline.
• The RSI suggests increasing chances of a recovery, contingent upon SOL maintaining support above $135.
• Analysts predict a potential 16.15% price increase for Solana, projecting a rise to $156.25 by mid-July 2024.

Solana (SOL) is currently testing critical support at $135, a pivotal level that it must defend amidst market pressures.

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The cryptocurrency’s price has been bolstered by a continuous upward trendline, which adds significant strength to this support zone. Recent market movements have seen SOL struggle near this mark, hinting at a precarious situation should it fail to hold.

Earlier in May, Solana faced a similar test when it dipped to $120 before staging a recovery that saw its price surge to $188 within the same month, showcasing its volatility and resilience. The RSI suggests a potential for recovery. However, for SOL to regain bullish momentum, maintaining support above $135 is crucial.

Looking ahead, analysts predict a potential upward movement for Solana, with expectations pointing to a 16.15% increase, potentially reaching $156.25 by mid-July 2024, according to current forecasts from CoinCodex. Despite this optimistic outlook, the sentiment in the market remains cautious, leaning towards bearish according to technical indicators. The Fear & Greed Index, reflecting market sentiment, currently stands at 74, indicating a period of greed among investors.

Over the last 30 days, Solana has experienced notable volatility, with 37% of trading days closing in the green. This fluctuation underscores the dynamic nature of SOL’s market behavior amid ongoing price adjustments and investor sentiment shifts.

As SOL navigates these challenging dynamics, the next crucial levels to watch are $140 and $150, where sustained momentum could potentially signal a broader recovery. The cryptocurrency market’s response to upcoming developments will likely shape Solana’s trajectory in the short term.

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