With the recovery in the cryptocurrency market, Solana (SOL) bounced off the trend line at the major level and temporarily regained the key horizontal level. Some analysts signaled that a retest of key short-term resistance could be imminent, while others warned that a break to recent lows was possible.
Solana is bouncing off the two-year trend line
On Friday, Solana rebounded by 10.3% and crossed the $85 area for the first time in three days. The cryptocurrency fluctuated between $78-88 last week, briefly falling to $67 during Thursday’s correction.
SOL lost the middle zone of its local range after recent market volatility, falling below $80 on Thursday. However, today’s rebound has pushed the altcoin above recently lost levels, setting the stage for a potential recovery.
Among these results, market observer Daan Crypto Trades highlighted that the cryptocurrency has reclaimed the key $80 level that has served as major resistance and support in the past.
For the trader, Solana needs to hold above this area and form a base above it before “watching to see if the market structure on the low time frame returns to a bullish value.” Analyst Ali Martinez noted that continued buying pressure could push the SOL price towards a level of $88, not seen since the beginning of the week.
Since last week’s crash, the altcoin has been unable to break above this level, becoming a key near-term resistance area. A break from this level may open the door to a retest of the $90-96 zone, where the April 2025 lows are located.
Meanwhile, Krypto Batman excellent that Solana is retesting its two-year downtrend line on a weekly basis centered around recent lows. The chart shows that the macro trend line has been in place since early 2024 and has been breached multiple times throughout the cycle.
As the analyst explained: “Over the last 2 years, every time the price touches this level, there is a huge reversal.” This period also marked the bottom of each major correction, with the last retest occurring in the second quarter of 2025 and leading to gains in the following quarter.
SOL failure still coming?
Despite the bullish outlook, other market watchers shared a potential bearish outlook for Solana if momentum weakens. Altcoin Sherpa warned that SOL could fall to $50 if selling pressure pushes the price below a key area.
The chart shows that after losing the 200-week exponential moving average (EMA) near the $121 level and the April 2025 lows, the key area to hold is the recently visited local lows.
As the analyst showed, if the cryptocurrency fails to hold the $77-78 price area, the next major historical support will be near the November 2023 breakout area around the $51 level.
Crypto Bullet market observer suggested that Solana may not have bottomed out yet, arguing that “those who bought BTC above $80,000 and SOL above $120 need to remain trapped for a year or two.”
He confirmed that “it does not make sense to return to these levels in the near future” because cryptocurrencies are in a period of decline.
In the post, X highlighted the phases of the market cycle, pointing out that the accumulation phase was in 2022-2023, while the distribution phase was between 2024 and early 2026. Based on this, the analyst’s chart shows that SOL could potentially find a bottom near the $40 area.
At the time of writing, Solana is trading at $84.17, down 2.5% on a weekly basis
Featured image from Unsplash.com, chart from TradingView.com
