The broader cryptocurrency market faced minor selling pressure during early Sunday trading, with $131 million in liquidations over the past 24 hours according to Coinglass data. This follows last week's profit-taking by investors amid growing macroeconomic concerns.
Solana's Price Action Mirrors Market Sentiment
Reflecting the overall market mood, Solana (SOL) has declined for four consecutive days since its June 11 peak of $168, testing the crucial $140 support level on June 13.
Why the $140 level matters:
- SOL price rebounded from this level during Friday's sell-off
- The bounce occurred during a broader altcoin downturn with over $1 billion in liquidations
- Analysts identify this as a make-or-break price point
Analyst Warns of Potential 30% Drop
Crypto analyst Ali emphasized the importance of the $140 level in a recent tweet:
👉 "SOL losing $140 support could open doors to $100 correction"
Key observations:
- Current price: $146 (0.39% 24-hour gain after dipping to $144)
- Critical support: $140
- Potential downside target: $100 (-30% from current levels)
Resistance levels to watch:
- 50-day MA: $160
- 200-day MA: $174
ETF Optimism Provides Counterbalance
Analysts suggest the SEC may approve certain crypto-related ETFs as early as next month, potentially kicking off an "altcoin ETF summer."
Key Developments:
- Bloomberg analysts predict "broad crypto index-tracking ETF approvals next month"
- Potential accelerated approval for Solana and Staking ETF applications
- Eric Balchunas forecasts "Solana may lead altcoin ETF summer"
FAQ: Solana Price Outlook
Q: What happens if SOL loses $140 support?
A: A breakdown could trigger a 30% decline toward $100, according to technical analysts.
Q: What factors could help SOL recover?
A: ETF approvals and renewed institutional interest may provide upward momentum.
Q: How significant are the moving averages?
A: The 50-day ($160) and 200-day ($174) MAs represent key resistance levels for any recovery.
Q: When might ETF approvals happen?
A: Some analysts project approvals could begin as early as July 2024.