- Solana has rebounded with the broader market, but analysts warn it must hold $120 to avoid a huge crash.
- Despite its strong performance this year and brief recovery to $138, market signals indicate weakness.
- Sustained ETF inflows offer a potential buffer, but it remains uncertain if they will prevent further correction.
Solana may have bounced with the broader crypto market over the last 24 hours, but analysts say the relief could be short-lived. Despite trading near $135, experts warn that SOL is dangerously close to losing a critical support level. If $120 breaks, the drop could be fast, and deeper than traders expect.
Crypto trader Ali shared data suggesting that Solana is approaching one of the most important support levels of its current market structure.
According to his analysis, losing the $120 zone would expose a liquidity gap on the chart. One wide enough to send SOL straight to $70, a staggering 48% decline from current prices.
Solana Faces a Critical Support Test
Solana has been one of the most resilient large-cap cryptocurrencies of 2025, consistently ranking among the top performers according to CoinMarketCap data. The latest bounce to $138 briefly lifted market sentiment, but the retrace back to $135 shows traders remain cautious.
Market structure analysts point out that Solana is still trending above its long-term ascending support, and historically, this zone has triggered multiple high-momentum rallies.
Based on Ali’s prediction, the coin may drop further to lower levels without any risk but losing $120 will mark the beginning of a steep drop.
Fortunately, SOL has held the support level successfully previously, and traders hope that it holds again this time to trigger the next rally.
Can Surging ETF Inflows Prevent a Breakdown?
One aspect of Solana that has demonstrated much strength is its spot ETFs. Reports indicate that the ETFs have now hit 20 days of unbroken inflow since debut, raking in $58 million on Monday 24 November alone.
The ETFs had maintained the same flow of funds during the first seven days of their launch, during which inflows remained strong even while SOL’s price corrected.
Analysts say this divergence could signal underlying institutional confidence, but ETF inflows alone may not override technical breakdowns if $120 fails.
Can the strong ETF demand stabilize Solana long enough for bulls to defend support? Or is a retest of the $70 region becoming unavoidable?
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- Solana Could Crash to $24 if it Loses this Critical Support Level
What do you think?
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