Recently, Solana price surged, hitting a key target zone and hitting new ATHs. However, following this rally, it experienced a decline, suggesting a correction. After falling below a trendline, the pullback became more evident, indicating that Solana may be in the middle of a corrective phase. The altcoin has gained over 48% over the past seven days.
On January 18, Donald Trump’s new coin debuted in the cryptocurrency market, quickly attracting billions in investments. Solana, the blockchain that supports Trump meme coins, performed better compared to other major cryptocurrencies over the weekend. As Trump’s inauguration approaches, Solana and the Trump meme coin are expected to remain in the spotlight.
Fibonacci Support and Market Dynamics
The current pullback has brought Solana to an important Fibonacci support level at around $247. This level could provide a strong base for a price reversal as it is known to be a typical retracement zone. If the price manages to hold above this support, it could signal that the market is ready for a new rally, although caution remains in order as the price is still in a fragile zone.
What’s next for Solana?
The next few days will be crucial for Solana. If the price reacts positively at the support zone, the coin could bounce towards higher levels, possibly approaching the next major resistance around $360 to $380. However, if the price continues to struggle below the $247 support, there could be further declines to come, potentially testing the $234 level or lower.
Look at key price levels: $247 and $234
The $247 level is particularly important, as it could determine whether the price will find support and rebound or face further declines. If price holds above $234, the outlook remains positive, but a decline below this level could signal further weakness and a possible continuation of the downtrend.
