Solana (SOL), one of the top-performing altcoins earlier this year, has entered a corrective phase, shedding nearly 10% of its value over the past week. As market uncertainty grows due to global geopolitical tensions and a broader crypto pullback, traders are closely monitoring whether this correction is about to bottom out—or if there’s still more pain ahead. Despite the recent decline, analysts believe that Solana may be on the verge of completing its pullback, with potential for a strong upside move in the near future. However, before that happens, some experts anticipate one more dip toward the $130 zone.

Solana Drops to Key Support Zone After Failing at $168

Solana had attempted to break through the $168 resistance last week but failed to hold that level amid broader market weakness. Since then, it has pulled back and hovered around the $140-$145 range for the past few days. This marks a 15% retracement from its monthly highs.

Since May, SOL has traded within a wide range between $145 and $180. Following sharp sell-offs in June, the cryptocurrency slipped back to the lower end of this range and has struggled to reclaim higher ground around $160.

Analysts note that this ongoing range-bound movement is part of a larger consolidation phase that may soon lead to a breakout—if the current support holds.

Falling Wedge Pattern Suggests a Bullish Breakout Could Be Near

Crypto analyst Lluciano pointed out that Solana is currently trading within a one-month falling wedge pattern, a technical setup typically associated with bullish reversals. According to him, while SOL may still drop slightly lower, the broader outlook remains positive.

The wedge’s upper boundary lies between $155 and $160. If SOL can break above this range convincingly, analysts believe it could aim for its May high near $187. A successful push past that level may even open the door to a $240 price target in the medium term.

Lluciano also emphasized Solana’s recovery since March, when it broke out of a multi-month downtrend by rising above a long-term descending resistance. That move helped SOL regain strength and climb back toward its current range.

$130 Retest May Be the Final Dip Before the Next Wave Up

While some analysts expect a breakout soon, others caution that Solana could still dip lower before bouncing back.

Crypto Bullet, a well-followed market watcher, believes that SOL may revisit the $125-$135 zone—an area it consolidated around in April. This move would complete the current correction before SOL returns to the $145-$180 range and attempts a new rally.

According to him, this would mark the “final dip” before a surge toward $200 and even $220-$250, aligning with bullish cycle expectations.

Consolidation Above Key Averages Is a Positive Sign

Another analyst, known as Rose, noted that Solana’s recent price action is still relatively strong, with the asset consolidating above the $145 support level and its 50-day moving average (MA). This technical support area is often seen as a bullish indicator when prices hold above it.

“If confirmed, we could see targets of $165, $183, and even $220,” Rose said, citing key resistance zones that could be tested if momentum builds.

Will Solana Outperform This Cycle? Analysts Are Divided

While there’s optimism around a short-term price rebound, not all analysts are bullish on Solana’s long-term relative strength—especially against Bitcoin (BTC).

Altcoin Sherpa, a well-known trader, argued that Solana is unlikely to outperform Bitcoin during the rest of this market cycle, despite its previous success in early 2021 and parts of 2024. He acknowledged that SOL might still perform well against the US dollar, but expects it to “bleed” against BTC in the coming months.

“Solana isn’t dead, but I don’t see it having a run like it did in 2021/2024,” he said. The analyst pointed out that SOL is currently retesting its November 2023 support levels on the SOL/BTC chart. The last time it failed to hold those levels, it dropped to yearly lows.

This perspective suggests that while SOL/USDT may rally, its performance compared to Bitcoin might be limited.

Current Price and Market Outlook

As of now, Solana is trading at approximately $145, reflecting a 12.1% monthly decline. Despite the drop, the coin remains within a broader uptrend when viewed on longer timeframes.

The coming days will be crucial for Solana’s trajectory. If it holds above the current support and breaks out of the falling wedge pattern, the altcoin could regain its bullish momentum. On the other hand, a dip to the $130 zone may be necessary to flush out weak hands before a larger move up.

Final Thoughts

Solana’s recent price drop has triggered concerns, but technical indicators and analyst insights point to a potential reversal soon. Whether SOL sees one more dip to $130 or breaks out from its current wedge pattern, many traders expect a significant move is just around the corner.

As always, crypto markets remain unpredictable. However, Solana appears to be gearing up for its next wave upward—as long as key support levels continue to hold.