Solana Struggles at $120 Support Amid Market Volatility

Solana has been under significant pressure in recent weeks, struggling to reclaim the $150 resistance level. This persistent failure has kept the cryptocurrency locked in a downward channel, despite occasional attempts at a rally. The $150 mark now serves as a major barrier, restricting momentum and discouraging new buyers. The broader crypto market volatility has contributed to Solana’s performance, reflecting overall investor caution and warnings about high-risk digital assets under uncertain economic conditions.

The inability to break through the $150 resistance has left traders at lower levels searching for signs of a potential reversal. As Solana approaches its historic $120 level, market sentiment remains weak. Analysts suggest that, besides successfully challenging the $150 resistance zone, there is little justification for bullish optimism. In such conditions, the price movement of coins becomes increasingly dependent on fundamental and economic shifts. Overcoming resistance is essential for breaking the bearish cycle.

The $120 level is a critical support for Solana, historically recognized for its role in determining previous trend reversals. This zone has acted as a starting point for rallies or a pitfall for deeper corrections, depending on market strength. The next move may either trigger a rebound or push the token into a similar decline. Solana’s behavior around these key trends may shape its medium-term market trajectory.

Ali Martinez’s technical analysis of Solana underscored the strategic importance of the $120 support. According to him, breaking below this line could accelerate a bearish breakdown. However, if bulls successfully defend it, this level can serve as a base for trend reversal. The outcome depends on market conditions aligning with favorable recovery. With no clear reversal alerts, all eyes remain fixed on Solana’s ability to maintain this vital level.

Rising tensions and economic instability have reintroduced a high range of crypto-market volatility, complicating Solana’s stabilization. Trump’s announcement of new tariffs on Liberation Day triggered strong reactions from international markets, unsettling investor confidence. Solana, in particular, is vulnerable to macro-driven sell-offs due to its high beta. This environment makes it harder to maintain support levels as investors flee to safety. Instead, traders are increasingly cautious about reacting to trends and inflation concerns. Under these conditions, sustaining a rally is extremely challenging. For Solana to preserve its ground, external market factors must stabilize. Until then, cryptomarket volatility remains a key factor influencing dealer behavior, making it harder for bulls to regain control or shield crucial technical levels.

If Solana breaks below the $120 support level, analysts warn that the next logical price target lies near $95. This area corresponds to both the 200-day moving average (MA) and the exponential shifting average (EMA), forming a strong technical confluence. A drop in this region would likely confirm a deeper bearish trend, echoing patterns observed in late 2023. Investors may interpret such a move as a loss of long-term bullish structures, resulting in additional pressure and market instability.

The failure to defend $120 would also undermine key findings from the recent Solana technical analysis, suggesting a strong possibility of prolonged downside. Market sentiment can change quickly as confidence increases. Without intervention from bulls or a shift in economic conditions, SOL may struggle to find significant support until much lower levels are achieved. Therefore, preserving the $120 threshold is not just technical; it is likely to define investor sentiment and Solana’s position in the broader market landscape.

Although the current outlook seems grim, a successful defense of the $120 support level could provoke a potential recovery trend. For this to happen, the asset needs only to maintain support and demonstrate momentum through improved volume and bullish indicators. If the price rebounds in this zone, it should serve as the foundation for a sustained rally. A close above $150 would, in addition, validate this recovery, opening doors to retest higher-demand areas and increase trader confidence.

In addition to technical analysis, calming cryptomarket volatility and geopolitical tensions will help create favorable conditions for a rebound. Reduced economic pressure should invite sidelined investors back into the market, boosting liquidity and stabilizing prices. Until then, traders continued to closely monitor its movements. With Solana positioned between strong support and imposing resistance, its next move could outline the narrative for altcoins’ recovery or continued decline.