Solana Price Prediction: SOL Breaks Down, Can $140 Support Hold?

Solana Consolidates as Bulls Defend $175 Support

Solana (SOL) stands at a crossroads as it struggles to recover major technical points after a severe dip to less than $180. Though weak in the short term, increased network activity and institutional confidence suggest that the ongoing consolidation can lead to a huge move.

After a drop below the key level of $180, the token showed signs of short-term weakness. Analysts suggest that if SOL is unable to recover this support, extensive retracement could occur towards $168 or even $140 before it rebounces. However, an eventual recovery to the zone of $194-$196 could be seen should the asset regain strength above $180.

SOLUSD 1H CHART | SOURCE: X

Technically, charts indicate that the market shows continuous selling activities after rejections at the $194 resistance zone. Attempts to recover higher levels were rejected, leading the price below $180, which is regarded as a buyer buffer zone. To lose this zone will suggest the decline of bullish momentum with a forecast of a downturn to $175 and below. 

Despite the weakness, indicators suggest that the market could be on the brink of exhaustion. A relief bounce could develop if Solana stabilizes around the lower level, as shown by the RSI trending in the overbought zones. Similarly, the MACD's extended bearish crossover underscores short-term pressure, although a contraction in histogram bars indicates the formation of reversal momentum in the near term.

SOLUSD 1D CHART | SOURCE: TradingView

Network Expansion Boosts Solana’s Strength

Besides price fluctuations, the ecosystem in Solana is developing positively as the network is supported by the rising adoption of decentralized applications and non-fungible tokens. Solana stands out as the fastest-growing blockchain ecosystem with developers expanding its applications, transaction throughput, and network efficiency.

Moreover, institutional interest in high-performance networks provides a buffer to the long-term perspective of the project. The growth of partnerships with DeFi and the tokenization of real-world assets remains in support of utility, allowing SOL to sustain the interest of investors in the face of a short-term market downturn.

Volatility Eases as SOL Amid Next Move

Across the market, traders have adapted to new volatility as altcoins have been subjected to short-term capital rotation and cautious sentiment due to Bitcoin's pullback from major levels. Nevertheless, accumulation is often preceded by fear-oriented actions, especially when prices approach historically high demand zones.

SOL is trading near $175 at the time of writing,  as it attempts to recover its lost levels. Holding above $175 contains the downside, whereas a resounding rise above $180 could be a short-term sign of recovery. To this point, though, patience is important as the crypto is consolidating, waiting to make its next significant move, which could determine its trend into the final quarter of the year.