TLDR
SOL price found support at $204 and shows potential for upward movement despite resistance at $220
Analyst Ali Martinez predicts potential long-term target of $4,000 based on cup-and-handle pattern
Current SOL price trading around $219 with market cap above $103 billion
Multiple firms including Bitwise and VanEck have filed for spot Solana ETF
Recent pullback saw price drop to $203 before recovering, with $14 million in 24-hour liquidations
Solana’s price has found stability above the $200 mark after experiencing a notable correction from its monthly high. The cryptocurrency, which trades under the ticker SOL, reached $263 before pulling back to $203 on Tuesday, December 10.
The market saw strong buying activity emerge at the $204 support level, helping SOL maintain its position above the key psychological $200 level. Trading data shows that buyers stepped in quickly when prices approached this zone.
Recent market activity indicates SOL trading volume remains healthy, with current figures showing $14 million in 24-hour liquidations. Of this total, $10 million represented long positions that were closed during the drop to $203.
Technical analysis reveals several key price levels that traders are watching. A bearish trend line has formed near $220, creating an immediate resistance level that SOL needs to break through for continued upward movement. The price currently trades near $219.
I think we bottom relatively soon. Bottom formations are often violent events and take some time but overall, those who are willing to buy are rewarded. See $SOL in April pic.twitter.com/z9XDfKjiyZ
— Altcoin Sherpa (@AltcoinSherpa) December 11, 2024
The $224 level represents another important technical point, marking the 50% Fibonacci retracement of the recent downward move from $243 to $203. This level could prove crucial for determining SOL’s next direction.
Market data confirms that Solana maintains a strong market position with its capitalization holding above $103 billion. This places it firmly among the top cryptocurrencies by market value, despite the recent price correction.
Trading patterns show SOL has established support at multiple levels, with $212 serving as the first line of defense. Below this, the $205 zone has proven to be a robust support area where buyers have consistently shown interest.
Short-term price action suggests the formation of a base around current levels. The hourly charts display increasing momentum, with the MACD indicator moving into positive territory, suggesting growing bullish pressure.
Solana Price on CoinGecko
The institutional interest in Solana continues to expand, with several major financial firms filing for spot ETF products. Companies including Bitwise, VanEck, 21Shares, Canary Capital, and Grayscale have submitted applications for Solana ETF approval.
Current market structures show the price trading above $218 and the 100-hourly simple moving average, indicating maintained technical strength despite the recent pullback. This positioning suggests the market maintains its structural integrity.
Historical data shows that SOL has risen more than 200% in 2024, making it one of the strongest performers in the cryptocurrency market. This growth has helped push its market capitalization beyond the $100 billion milestone.
Looking at immediate price levels, the zone between $228 and $235 represents the next major resistance area. Market order books show substantial sell orders placed at these levels, which could impact near-term price movement.
Technical indicators on the hourly timeframe remain balanced, with neither excessive buying nor selling pressure. The relative strength index maintains a neutral position, suggesting room for movement in either direction.
Market depth data indicates strong support has formed in the $200-$205 range, with significant buy orders placed at these levels. This support zone has already proven effective during the recent pullback.
Trading volumes show consistent activity across major exchanges, with balanced distribution between buyers and sellers at current price levels. This equilibrium suggests the market is finding a natural trading range.
The most recent price action shows SOL trading at $219, maintaining stability above key support levels while facing resistance near $220. The 24-hour trading range establishes clear boundaries between $203 and $220.
The post Solana (SOL) Price Action: Understanding the $203-$220 Range appeared first on Blockonomi.
