Crypto market sees a plunge with $650 million liquidated in 24 hours. Solana drops 4%, testing a crucial support at $123. Will this demand zone trigger a bounce to $144, or succumb to selling pressure?
Currently trading at $128, Solana has once again dropped toward the bottom of its range. However, Solana bounced perfectly, creating a swing failure (an engulfing candle) outside the range before reintegrating it.
This phenomenon indicates that buyers and smart money defended this level. The bounce at $128 shows that SOL has a high probability of having reached its local bottom.
If SOL holds above $127, it will target $132 or even $134 in the coming days. Sellers will emerge in these zones. Short-term consolidation or a retracement is likely.
Nevertheless, from a technical perspective, SOL now has a strong chance of returning to the top of its range toward $141-$144 by year-end, given its bounce at this crucial support level.
The daily timeframe for Solana is currently drawing a triple bottom configuration. This technical setup materializes when the price tests the same support level three times without breaking it decisively.
Indeed, three distinct lows are forming around the support zone between $121 and $123. This is the classic pattern of a range that constitutes either distribution or accumulation.
And in range trading, a swing failure like the one observed yesterday is a buy signal. SOL has even reclaimed its trendline at $125.7.
If buyers manage to defend the $125-$127 zone and the price avoids a daily close below this range, Solana will confirm its third structural low. This validation of the triple bottom would significantly increase the probability of a bounce toward the resistance at the top of the range located near $144.75, representing a potential upside of approximately 14% from current levels.
A decisive breakout above the Order Blocks with expanding volume would reinforce the bullish scenario and open the path toward the $168.50 region. This move would require, however, a clear reclaim of the range resistance to obtain solid technical confirmation. For now, the 30-minute CVD indicates underlying accumulation.
Conversely, the inability to maintain the $121 support with a confirmed daily close below would completely invalidate the triple bottom setup. This bearish scenario would redirect the technical outlook toward a continuation of the downward movement, with the next potential target in the $110-$115 zone.
Solana is therefore at a major technical inflection point. The coming sessions will determine whether this third support test triggers the anticipated bounce or whether the demand zone finally yields under persistent selling pressure. The risk/reward ratio becomes particularly attractive at these levels for range traders.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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