- Solana is testing $120.12 support after a 5.01% drop.
- A bounce off the Ichimoku Cloud could push Solana to $150-$160.
- Failure to hold $120.12 could lead to a decline towards $100.
Solana (SOL) has recently seen a significant drop, reaching $120.12, marking a 5.01% decrease. As of March 2025, the weekly chart reveals that Solana has reached the lower part of the Ichimoku Cloud, indicating that the token is at a critical support level. The recent dip towards the cloud’s bottom suggests a possible area of consolidation before any potential reversal. The key support level at $120.12 must hold in the coming weeks for Solana to avoid a deeper downturn, with further declines likely to reach the next major support levels.
Price Action and Ichimoku Cloud Analysis
Looking at the chart, the Ichimoku Cloud is acting as a major guide for Solana’s price action. The price has recently dipped below the Cloud, which usually signals a bearish trend. However, the fact that the price is now testing the lower part of the cloud is noteworthy. If this level holds, it could suggest that the market is ready to rebound and move back into the Cloud, signaling a potential trend reversal. On the other hand, if the price continues to fall below the cloud’s support zone, further downside risks become more likely, and the next support level to watch would be near $100.
Solana’s recent decline could be seen as a cleansing phase, with the market shedding weaker positions. This is a typical market cycle, where tokens that have seen rapid price appreciation go through a consolidation phase. The fact that Solana is testing a strong support zone near the bottom of the cloud may indicate that the token is ready for a recovery, assuming the broader market sentiment turns positive. Volume analysis shows that while there has been a decrease in the volume during the downtrend, the overall market sentiment for Solana remains relatively stable, indicating that there might be an opportunity for a strong rebound.
Outlook and Potential for Reversal
The current position at $120.12 represents a critical juncture for Solana. A bounce off the cloud’s lower level could propel the price back into the Ichimoku Cloud, possibly towards the $150-$160 range. However, if the support fails to hold, further downside pressure could push Solana back towards the $100 mark, where additional support is likely to emerge. The next few weeks will be crucial in determining whether Solana can regain its bullish momentum or if the market will see another period of consolidation or further declines.
