Solana Faces Crucial Test at $178 Resistance After 12% Weekly Drop

Solana, a prominent cryptocurrency, is currently facing a critical juncture as it consolidates below a pivotal resistance level of $178. Despite a recent drop of over 12% this week, the digital asset maintains a bullish structure from its $95 swing low, indicating sustained upward momentum. Market participants are closely monitoring these price movements, as the current support at $163 is vital for bulls to prevent further downside pressure.

Joe Swanson, a prominent cryptocurrency analyst, identifies the $178 level as crucial resistance for Solana. The token has been forming higher lows while pressing against this supply zone, suggesting continued buying interest. Swanson points to $241 as the next major resistance target, representing potential upside of approximately 35% from current levels. This projection aligns with technical patterns observed in the daily and weekly timeframes. The $175 to $178 range serves as a critical apex zone where selling pressure may intensify.

Analyst Hov provides additional perspective on Solana’s price structure, noting the complexity of recent price action. Hov suggests that current movements could represent either a continuation pattern or a corrective phase in the broader uptrend. Key support levels require testing to confirm their validity as foundation points for future rallies. The analyst emphasizes that successful defense of support levels could propel SOL toward new all-time highs. However, failure to maintain these crucial zones might trigger deeper corrections. Risk management remains paramount as traders navigate these uncertain market conditions while positioning for potential opportunities.

According to the analyst's forecast, Solana has the potential to rally if key levels hold. The cryptocurrency has been fluctuating between $163.25 and $186.79, with immediate resistance sitting at $173.18, followed by the weekly high of $186.79 that SOL tested earlier this period. Market participants are watching for either a reclaim of support or a potential breakdown to lower levels. The current support at $163 is crucial for maintaining bullish momentum, and a successful defense of this level could set the stage for a potential rally toward the $241 resistance target.