In the past, Solana (Sol) has bounced several times when about $ 120 arrived. Many investors and traders maintain up to sun expectations in this cycle. Before evaluating Si Solana (Sol) is in a key zone for a rebound, it is essential to understand what factors caused their fall, marking a 2025 start for oblivion. The crisis that crosses the Solana ecosystem started with the pound scandala token of this network released by the president of Argentina, Javier Milei. The project was presented as a tool to encourage the growth of companies in that country but, finally, its usefulness turned out to be practically nil. It is that its launch was marked by irregularities, which led many to consider it a scam. «If the current Solana wounds could be traced, their fateful origin could be the time when cryptocurrencies became political toys,» said the analysts of the financial newsletter The Token Dispatch. This is because the arrival of Libra generated legal doubts about other initiatives in the networklike the official memecoins of Donald Trump (Trump) and the first lady of the United States (Melania). Active environment initially shot up until they reached multimillion -dollar assessments before collapsing, leaving most investors with large losses. As cryptootics reported, Trump «broke» the digital asset market and He brought the price of sun to its historical maximum (ATH) of $ 293.
These launches have led to the ecosystem being called by many «the casino of cryptocurrencies», generating doubts within their community about its sustainability and credibility. If this were not enough, the sun performance is also affected by the general fall of the market, caused by the commercial war that President Donald Trump unleashed, imposing tariffs on imports from China, Mexico and Canada. In addition, he advanced his plans to apply this policy to certain acquisitions of the European Union. The policies promoted by Trump revive the fears of an economic recession in the main global financial power, which affects the performance of Bitcoin (BTC) and cryptocurrencies, because they are still considered by several investors as risk assets. In this scenario, investors usually take refuge in treasure bonds. In addition, the Federal Reserve (FED) maintains the interest rate around 4.25%-4.50%, and its president, Jerome Powell, already warned that he is not in a hurry to reduce it, since his priority remains to control inflation. This series of bearish events caused a true perfect storm that brought the price of sun to the level of $ 115. At the time of the publication of this note, the Solana price is $ 126, 55% below its historical maximum (ATH).
Solana price in the last 12 months. Source: TrainingView. At this point, perhaps, the reader wonders How can it be that Solana is at an ideal price to bounce upif it is going through a serious crisis and the market does not stop receiving bad news. The key is in the support and resistance theory, where a light could be glimpsed at the end of the tunnel. As explained in cryptopedia, educational section of cryptootics, the term support is used to define a kind of soil or level in which the price of an asset collides or bounces. In the case of Sol, this line has worked as a key zone, where the price has bounced on multiple occasions. This is a positive factor for the future of sun, since If the $ 120 zone acted as a support in the pastIt means that there is a purchase interest at that level. In addition, if the price manages to stay above that threshold, it could reinforce the support and increase the probabilities of an upward bounce. To confirm a recovery, Sol must also exceed the key resistance in $ 150. If this occurs, the price will return easily above $ 200. It must also be explained that if Sol loses that level, he could experience a deeper fall and the support of $ 120 could become a resistance.
Sol maintains a key support in the $ 120. Source: TrainingView.
«This is the reset that Solana needed»
Erika Espinal, Trader and Cryptocurrency Market Analyst, points out that, after the Libra scandal, «Solana became a casino of the Insiders, as those people who had privileged information are known.» In turn, he remarks that this fact ended «destroying the confidence of Solana», but considers: «I think it is the reset (restart, in Spanish) that needed sun. Now, people with weak hands leave and the investors remain in the long term, those who believe in the project. ” The specialist predicts that The price of Solana could climb at $ 300, although it also does not rule out that, in the best stage, it shoots up to $ 1,000. For that reason, he emphasizes: «Solana is not dead.» Bitwise, a digital asset management firm, projects that Sol could increase to $ 6,300 for the year 2030 thanks to the growth and stability of the block chain, which has not been interrupted for a year. This data is important for Solana, since in the past it suffered network failures. Its current stability reinforces the confidence of investors and developers.
Along the same lines, Ali Martínez, cryptocurrency analyst, points out that the sun's price is about to bouncing on the support of an upward channel, which could boost it up to $ 140 in the short term. An upward channel is a technical analysis pattern that is formed when the price of an asset follows an ascending trend within two parallel lines: the support, which marks the minimums, and the resistance, which limits the maximums. In this range, the price bounces between both levels.
Ali Martínez forecasts a rebound that could take the price of sun to 140 dollars. Source: @ali_charts. However, for the bullish projections to be met, a series of events such as the launch of the bags listed in the Sunbag (ETF) in the United States must be aligned. As cryptootics has reported, six companies submitted their applications to the Bag and Securities Commission to Listar ETF based on this asset. In case they are approved, they could attract more liquidity to their ecosystem, In addition to increasing their exposure among institutional and corporate investors.
Likewise, the creation of a Bitcoin strategic reserve promoted by the Trump government, in the long term, will favor the rest of the cryptocurrencies. Another determining factor for sun recovery is an improvement in the market in general and a cut of the interest rate by the Fed. A lower rate reduces the cost of indebtedness and encourages investors to seek risk assets, such as BTC and other cryptocurrencies. If these upward events align and the community recovers confidence in the ecosystem, Sol could not only overcome the 200 dollars, but also consolidate as a firm rival of Ethereum in terms of adoption and development.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author's opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.
