Amid the recent market pullback, Solana (SOL) is attempting to reclaim a crucial area to continue with its bullish rally. Some analysts have suggested that the cryptocurrency will likely break out to new highs if a key support level is held.
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Solana Back Below $200
Earlier this week, the market soared under the lead of the two largest cryptocurrencies. Bitcoin (BTC) hit a new all-time high (ATH) of $124,000, and Ethereum (ETH) hit a multi-year high of $4,788 in the early hours of Thursday.
Nonetheless, higher-than-expected macroeconomic signals and the US’s decision not to purchase BTC for its Strategic Reserve sent the market into a nosedive, with most tokens bleeding throughout the day.
Solana, which had just climbed to an eight-month high of $209, saw a 10% drop from the highs, retesting the recently reclaimed $190 support level. Price continues to dip after the US Securities and Exchange Commission (SEC) announced it had pushed back its decision on multiple Spot SOL exchange-traded funds (ETFs).
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, and the issues raised therein,” the regulatory agency stated.
The SEC delayed the final deadline for the decision on Bitwise, 21Shares, VanEck, Grayscale, and Canary Capital Solana ETFs for two months, pushing it to October 16, 2025. Despite the delay, ETF expert James Seyffart suggested that the SEC’s decision is not a bad sign, adding that he expects standard spot SOL ETFs to be approved by mid-October “at the latest.”
The altcoin dropped to the $188 area before bouncing. After the brief market recovery, SOL continued to retest the $180-$190 area, hovering between the $184-$186 support zone throughout Friday afternoon.
Last Dip Before New Highs?
Analyst Ali Martinez offered a positive outlook for the cryptocurrency, affirming that Solana might be offering “a final buy-the-dip chance” before a potential 100% rally from current levels.
The analyst pointed to a six-month ascending triangle pattern on the altcoin’s chart, which targets the $360 area once it breaks out of the formation. Notably, SOL has retested the pattern’s resistance twice since the July breakout, with its latest rejection occurring on Thursday.
Amid the recent performance, Martinez also noted that wallets holding over 10,000 SOL tokens hit a new ATH this week, with 5,224 wallets holding around $2 million worth of Solana each.
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Meanwhile, Sjuul from AltCryptoGems asserted that the cryptocurrency is “trading in a perfect uptrend, already tested the resistance at $200 three times,” highlighting SOL’s four-month ascending channel.
To the market watcher, Solana will likely break out and move to ATH levels soon if it holds above the $180 level, which has been a crucial support and resistance area for the altcoin this cycle.
As of this writing, SOL is trading at $184.9, a 4.7% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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