Solana’s $127 price level is currently a critical battleground, serving as both support and resistance for the cryptocurrency. Breaking through this level could open the door for Solana to climb higher, targeting resistance levels at $140 and $150. However, this feat is not easy due to various factors. Weak DeFi activity and on-chain engagement below pre-election levels suggest a lack of market participation. Market uncertainty has led to traders unstaking SOL, adding to potential selling pressure. A recent whale unstaking 60,298 SOL at $127 reinforces this level as a strong supply zone.
The Relative Strength Index (RSI) is trending downward, indicating potential selling momentum unless there is a fresh capital influx into the broader market. This leaves Solana vulnerable to another corrective move, with key levels to watch for the cryptocurrency’s next dip. Despite BlackRock’s significant $1.7 billion investment in Solana’s BUIDL initiative, bullish news has not sparked a strong recovery for the cryptocurrency. The SOL/BTC pair hitting a two-year low on the daily chart suggests a shift in investor preference and capital flowing elsewhere. The 3.71 million leveraged positions on the 12-hour derivatives chart face an elevated risk of liquidation if SOL retests the $124.91 support level.
A 32.54% contraction in Solana’s trading volume to $2.05 billion diminishes the probability of a strong bullish defense, reinforcing downside risks. Risk-off sentiment remains high as markets anticipate high-stakes tariff decisions in the upcoming week, adding to macro uncertainty. As Q2 unfolds amidst heightened volatility, a retracement towards the $110–$115 demand zone becomes increasingly likely. Traders should exercise caution in their Solana investments in light of these factors.
In summary, Solana’s $127 price level remains a crucial point for the cryptocurrency’s performance, acting as both a support and resistance level. Overcoming this barrier could lead to higher targets at $140 and $150, but various challenges such as weak DeFi activity, market uncertainty, and selling pressure from unstaking SOL present obstacles. The RSI trending downward and lack of bullish momentum indicate the potential for another corrective move. Traders should monitor key levels for Solana’s next dip and exercise caution amidst decreased trading volume and elevated risk of liquidation in leveraged positions. As uncertainty looms in the market, a retracement towards the $110–$115 demand zone appears probable.
