Home Business SKN | Is $130 Really the Bottom for SOL? Three Key Data Points Suggest It Might Be
BusinessFinance

SKN | Is $130 Really the Bottom for SOL? Three Key Data Points Suggest It Might Be

Share
A close-up photograph of a physical Solana (SOL) coin standing upright among other coins on a reflective surface. The image represents the cryptocurrency that is the subject of a 2025 article about its potential to become a key network for Wall Street.
Share

Solana (SOL) has recently revisited the $130 price area, prompting analysts to argue that this level may have marked a more substantial bottom than many anticipated. With three distinct technical and on‑chain metrics aligning, some investors are increasingly confident that the worst may be behind the token — raising the question: can SOL reclaim its prior range highs?

Long-Term Trendline Holds Strong

One of the most convincing arguments comes from the multi‑year rising trendline that dates back to 2020. Analysts note that SOL’s dip toward $130 coincided precisely with this diagonal support, a level that has historically attracted buyers during destructive corrections. This trendline isn’t just a short-term anchor — it has formed the backbone of several major rebounds in prior cycles. Importantly, long-term observers suggest that as long as SOL continues to respect this line, there remains structural upside potential, possibly toward the $300–$400 band if demand re-emerges.

Critical Horizontal Support at $130

Another data point backs the $130 zone: SOL’s historical performance around that level. The $130 price area has functioned as a horizontal support zone on multiple occasions, thanks to its alignment with key Fibonacci retracement levels. Analysts previously identified this “golden zone” between roughly $130 and $150 as a likely floor in the event of meaningful drawdowns. The fact that SOL bounced from this region suggests that traders remain attentive to that demand pocket and that it may serve as a decision point for medium-term price structure.

Sell-Off Overshoot and Mean Reversion Potential

Technical traders also point to recent sell-off dynamics as evidence of a possible overshoot. Indicators show that SOL’s decline below $135 was accelerated by momentum-selling, raising the odds of a mean reversion rally. Historically, when SOL enters deeply oversold territory around major support, it has offered sharp rebounds. The rebound from around $130 or slightly below could reflect such a setup: the kind of forced capitulation that precedes disciplined accumulation. Strategically, this suggests some participants may view the current drawdown as an opportunity to build or re-enter, especially if volume and on-chain activity pick up.

Looking ahead, the $130 region will remain a critical battleground for Solana. Should the trendline hold and the token rebound convincingly, a retest of prior range highs around $170‑$180 could be back on the table. However, if this support fails under heavier volume, SOL could revisit lower structural zones. Key risks include macro volatility, weakening on-chain activity, and any breakdown of long-term technical guides. Opportunities also exist: if SOL can recapture momentum, renewed interest from both retail and institutional players could fuel a next leg of growth. Investors will be watching closely — not for narratives, but for confirmations.

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

SKN | CoinDesk 20 Update: Solana Surges 5.8%, Propelling Index Higher

  Solana Leads the Rally Solana (SOL) emerged as the standout performer in the latest CoinDesk 20 Index update, increasing 5.8% since Monday...

SKN | Tether’s Strategic Investment in Ledn Signals Bolstered Confidence in Bitcoin-Backed Lending

Tether, the issuer of the world’s largest stablecoin, USDT, has announced a significant strategic investment in Ledn, a prominent digital asset lending platform....

Related Articles

SKN | Bitcoin and Strategy Supporters Call for Boycott of JP Morgan as Index Clash Intensifies

Growing Tensions After Warning That Crypto Treasuries May Be Removed From Major...

SKN | Zcash Sparks Political Concerns as Analysts Warn of a ‘Split Vote’ Against Bitcoin

A fresh debate erupted today after Bloomberg Senior ETF Analyst Eric Balchunas...

SKN | Grayscale Identifies Chainlink as ‘Critical Connective Tissue’ for Tokenized Finance

Grayscale Positions LINK as Essential Middleware for RWA Economy Grayscale Investments has...

SKN | Bloomberg Analyst Warns Zcash Risks ‘Splitting the Vote’ for Digital Sovereign Adoption

Zcash Likened to Third-Party Candidate as Critics Allege Artificial Hype As Bitcoin...