Solana Price Dips Below $120: Support Levels and Analyst Views

Solana Price Dips Below $120: Support Levels and Analyst Views

Solana price has fallen below $120 after its rally stalled near $125, leaving traders focused on whether support around $117 can hold. The price has retreated from $124.62 after failing to break the $125 level on the daily chart.

The $117 area is the immediate test, followed by $116.32 and $112.50 if selling continues. A recovery above $120.29 would put the $124–$125 resistance area back in focus. SOL traded near $117.50 on Sep. 29, about 5.7% below its Sep. 27 high of $124.62.

Background and Timeline

Solana's price has been on a rollercoaster ride in recent days, with a sharp rise from the mid-September area near $97. The token has remained well above that level, but the move from $124.62 to roughly $117.50 has put the latest leg of the rally under pressure.

The daily and 4-hour charts now place the next tests on opposite sides of the current price: support near $117 and resistance from about $120 to $125. The 14-day relative strength index stood near 61, down from its recent highs and below its moving average near 64.

The 4-hour chart gives a closer view of that change. SOL traded near $117.59, below the Bollinger Bands’ middle line at $120.29. Chaikin Money Flow had dropped to −0.15, a negative reading that points to increased selling pressure on that timeframe.

Technical Analysis

The charts show where the rally stalled and how far SOL has pulled back. They do not establish a single cause for the decline. The move is consistent with traders selling into resistance after the recent advance, while the 4-hour money-flow reading shows that selling pressure has increased over its measurement period.

The daily chart marks $125 as a major Murrey Math resistance level, which SOL approached but failed to break. The price reached $124.62 on Sep. 27, then fell over the following two days and moved below the indicator’s $118.75 level.

The 4-hour chart shows SOL trading near $117.59, below the Bollinger Bands’ middle line at $120.29. A move beneath the lower Bollinger Band at $116.32 would place the daily chart’s $112.50 level in focus.

• The $117 area is the immediate test for Solana price.
• A break below $117 would bring the 4-hour lower Bollinger Band at $116.32 into view.
• The next marked level on the daily chart sits at $112.50, roughly 4% below SOL’s price near $117.50.

Analyst Views

Analysts are watching the same area from different angles. Daan Crypto Trades said in a Sep. 29 post that SOL had moved above resistance at $117 and identified $148 as a possible target if that level held.

In a separate Sep. 29 post, analyst Batman said SOL had broken below a rising trendline. He said the token would need to reclaim both the trendline and a nearby support area to restore the earlier setup.

Daan Crypto Trades' view is that SOL has moved above resistance at $117, which is a positive sign for the token. However, Batman's view is that SOL has broken below a rising trendline, which is a negative sign.

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The difference between the two views rests on what happens around the current price. A hold above $117 would keep Daan’s identified support in play. A recovery through $118.75 and $120.29 would provide stronger evidence that buyers are regaining ground. Further losses would leave the broken trendline and lower chart levels in focus.

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Implications for Traders

For traders, the key takeaway is that the $117 area is the immediate test for Solana price. A break below $117 would bring the 4-hour lower Bollinger Band at $116.32 into view, while a recovery above $120.29 would put the $124–$125 resistance area back in focus.

Traders should also be aware of the potential for liquidations around $117, as indicated by CoinGlass’ three-day liquidation heatmap. The heatmap shows a cluster of estimated liquidations around $117, close to SOL’s latest price.

Overall, the situation for Solana price is uncertain, and traders should be cautious in their approach. The token's price has been volatile in recent days, and there is no clear indication of what will happen next.

What to Watch Next

For now, the focus is on whether SOL can hold around $117. If the token can maintain its current price, it could indicate that the pullback is contained. However, if SOL falls below $117, it could lead to further losses and a test of the $112.50 level.

Traders should also be watching the 4-hour chart, which shows SOL trading near $117.59, below the Bollinger Bands’ middle line at $120.29. A move beneath the lower Bollinger Band at $116.32 would place the daily chart’s $112.50 level in focus.

Ultimately, the outcome for Solana price will depend on the actions of traders and investors. If buyers regain confidence and push the price above $120.29, it could lead to a sustained recovery. However, if sellers continue to press the price, it could lead to further losses and a test of the $112.50 level.

Conclusion

Solana price has fallen below $120, leaving traders focused on whether support around $117 can hold. The situation is uncertain, and traders should be cautious in their approach. The token's price has been volatile in recent days, and there is no clear indication of what will happen next.