Solana Hits Major Support at $141 Amid Bitcoin Drop, Analyst Says Time to Buy

Solana’s price action it is decreasing over the past 30 days, and the cryptocurrency recently dropped to $141.3, its lowest price in that time frame. Interestingly, this decline saw Solana reach a major support level, which could reverse course in its price action for the next 30 days. According to a social media post by crypto analyst Ali Martinez, Solana could turn bullish in the coming days if this support holds.

Solana obtains important support

Solana has struggled with trader attention along with other altcoins, with the most activity go to Ethereum after SEC approval Spot ETF on Ethereum. As a result, SOL has fallen dramatically from $187 over the past three weeks, losing approximately 24% of its value.

This fall was further aggravated due to The corresponding drop in Bitcoin in recent days. While Bitcoin fell below $65,000, Solana slipped to $141, testing support at its 200-day moving average.

As Martinez noted, the trip to the $141 support level appears to have signaled a reversal, at least in the short term. Notably, the TD Sequential indicator has issued a buy signal for Solana SOL on the daily timeframe, suggesting that now may be an opportune time to pick up the altcoin as it begins to rebound.

TD Sequential counts the number of candles in a trend, with a 9 indicating 9 periods of lower lows or lower highs. After 9 periods, the probability that the trend can reverse increases.

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After two consecutive red candles, SOL now appears on the verge of forming a green candle, according to the daily timeframe chart shared by the analyst.

“If this support holds, #SOL could bounce one to four daily candles,” Martinez noted.

SOL is currently trading at $145. Chart: TradingView

SOL Price forecast

At the time of writing, Solana is trading at $145.10 and appears to be already on a recovery path. If you look at a longer time horizon, you see that the last time Solana stopped at $141, the cryptocurrency would go on to rise 32% to $186. Repeating this price action we would see Solana go back up to $186 during the new week. If Bitcoin can also hold key support levels at $66,300, that could help SOL and other altcoins see some decent bounces from here.

However, not all TD indicator signals result in sustained uptrends. If Solana fails to hold above $140, this could lead to a further price decline towards another support at $130. Second Coinglass Long data vs. short, traders are still undecided on Solana’s direction. Specifically, 49.05% of Solana futures positions opened in the past 24 hours were long, compared to 50.95% of short positions.

Featured image from Getty Images, chart from TradingView

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