Solana (SOL) Faces a Critical Juncture: Will It Bounce Back to $200, or Crash to $100?

Solana (SOL) faces a critical juncture. Hovering near the $140 support, the cryptocurrency struggles to maintain its bullish momentum.

Solana (SOL) price attempts to hold onto bullish momentum as it stalls near the critical $140 support. The cryptocurrency struggles to maintain its bullish structure, especially as Bitcoin price dips below $60K, leaving SOL’s price action vulnerable to bearish risks.

Solana price experienced a turbulent few weeks. From July 29 to August 5, the coin encountered a steep 42% drop, plummeting from $192 to $110. This decline formed a V-shaped reversal, a classic sign of potential recovery, with SOL climbing back to $160 before retreating again to $145.

Now, Solana price is testing the strength of its support at $140. This level has become a critical point for traders as the token continues to trade within a bullish flag pattern, which began forming during the pullback phase from $192.

Solana price is attempting to maintain bullish momentum as it stalls near the critical $140 support.

This pattern often forms during a bullish trend, indicating a potential continuation of the uptrend. However, the token faces resistance from its key Exponential Moving Averages (EMAs): 20-day (red), 50-day (orange), 100-day (blue), and 200-day (violet).

Solana price is also forming a bullish cross on the Moving Average Convergence Divergence (MACD) indicator. The average lines are preparing for a crossover, which could signal a shift in momentum to the bullish side. Those betting on a rise to $200 will be hoping for this bullish momentum to continue pushing SOL higher.

Solana price consolidation is happening between key Fibonacci retracement levels. It is currently trading between the 38.20% level at $141.41 and the 50% level at $151. A break above $151 could lead to resistance at the 61.80% Fib level of $160, and potentially higher at the 78.60% level of $174, before challenging the $192 peak.

Solana price stalls near critical $140 support – what’s next?

Crypto analyst Ali Martinez pointed out the possibility of a head-and-shoulders pattern forming on lower time frames. A neckline for this pattern is forming at $141. A break below $140 could invalidate the bullish flag, potentially leading SOL to retest the 23.60% Fibonacci level at $129, or even drop to $110.

Solana price attempts to maintain bullish momentum as it stalls near the critical $140 support.

Solana price attempts to maintain bullish momentum as it stalls near the critical $140 support.

Solana price attempts to maintain bullish momentum as it stalls near the critical $140 support.

Solana attempts to maintain bullish momentum as it stalls near the critical $140 support

Solana price attempts to maintain bullish momentum as it stalls near the critical $140 support. A break below $140 could invalidate the bullish flag, potentially leading SOL to retest the 23.60% Fibonacci level at $129, or even drop to $110.

On the other hand, a breakout from the bullish flag could see Solana price rally towards the 78.60% Fibonacci level at $174, followed by the $192 peak, before attempting to rally to new all-time highs.

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