Solana News Today: Solana Bounces 9.6% on Smartphone Launch but Struggles Near $165 Support

Solana (SOL) is currently trading at $163, hovering near a crucial $165 support level that may determine whether the cryptocurrency continues its recent downward trend or sets the stage for a potential rally to new all-time highs in the third quarter [1]. The token has seen a 3.3% drop in daily trading and has corrected 25% from its recent peak of $206, reached two weeks ago [1]. The ongoing price consolidation at $163 reflects broader uncertainty among investors and analysts, who are divided on the short-term outlook for Solana.

Tuesday brought a brief reprieve for Solana investors, as the token surged 9.6% following the announcement that Solana Mobile began global shipments of its second-generation Web3 smartphone, the Seeker, to over 50 countries [1]. The news pushed the price to a multi-day high of $171 before it retreated to the mid-zone of its established $140–$180 trading range [1]. This range has been a familiar trading pattern since April and May, with the token spending three months attempting to reclaim its local high within the channel [1]. During June’s broader market correction, Solana briefly tested the $120–$130 zone but managed to recover in July, reaching a five-month high of $206 [1].

Technical analysts have highlighted $165 as a key support level, where 44.4 million Solana tokens—representing 7.42% of the total supply—are clustered [1]. Market analyst Ali Martinez points to the UTXO Realized Price Distribution indicator, which shows this price level as a focal point for accumulated token balances. A breakdown below $165 could trigger further selling pressure, potentially transforming the level into resistance [1]. On the other hand, a reclamation of $165 could see Solana face resistance at $177 and $189, where 27.6 million and 23.6 million tokens are respectively concentrated [1].

Analysts remain divided in their predictions for Solana’s near-term price movement. Analyst Crypto Jelle takes a bullish stance, arguing that the cryptocurrency is "quietly trending higher" and that key resistance levels are converting into support as it makes higher lows [1]. He anticipates new all-time highs this quarter and believes that once Solana breaks above the $200 level, the upward momentum is unlikely to slow [1]. Conversely, analyst Crypto Batman suggests a more bearish scenario, forecasting a 10% correction to around $150 before a more significant move can begin [1]. According to him, the $150 level has historically served as a launching pad for rallies, having supported the token in previous April and June rebounds [1].

Ted Pillows, another analyst, acknowledges the recent price weakness but remains optimistic about Solana’s long-term potential. He predicts a 10–15% correction toward the $140–$150 range before a reversal is likely [1]. The divergence in views underscores the current uncertainty in short-term price direction, while longer-term optimism persists based on the platform’s strong network fundamentals and adoption metrics [1].

The UTXO Realized Price Distribution (URPD) is one of the key tools used in technical analysis to identify potential support and resistance levels. By showing where the majority of tokens were originally purchased, the indicator helps traders anticipate areas of potential price action [1]. Solana, as an altcoin—meaning any cryptocurrency other than Bitcoin—is part of a broader ecosystem of blockchain platforms focused on high-speed transactions and smart contracts [1].

At this critical juncture, Solana’s ability to hold above $165 will be key in determining its immediate price direction. With forecasts ranging from a 10–15% drop to expectations of new all-time highs, the market is watching closely for signs of whether the support level will hold or give way to further declines [1].

Source: [1] Solana Struggles at $163 as Experts Debate 10-15% Drop Versus New Highs (https://coinmarketcap.com/community/articles/68930347320e3f0b1f75b882/)