Solana Drops 7%, But This Key Support Could Spark a Rally

TL;DR

• SOL drops 7% after hitting key resistance; support at $223 now in focus for short-term bounce.
• Rounded bottom breakout on SOL/BTC may retest support before trend continuation resumes.
• Pantera Capital sees growing interest in Solana as ETF speculation and adoption rise.

Rejection at Resistance Sends SOL Lower

Solana (SOL) is trading around $223, after falling more than 7% in the last 24 hours. Over the past week, it has declined by nearly 5%. The move down comes after the price tested the $250 resistance level, which is the same zone that capped it before the previous all-time high.

Meanwhile, the weekly chart shows that this level continues to act as strong resistance. Despite the rejection, the longer-term trend remains upward. Analyst Lennaert Snyder commented:

This area had served as resistance before and now holds as the key support in the current market structure. On the 4-hour chart, this zone has acted as a base during earlier consolidation phases. If this level holds, it could open the way for a short move toward $240–$245.

Market watcher BitGuru noted:

Price action remains uncertain at this level. If it breaks, the next key support sits near $220, an area where buyers previously stepped in during sideways movement.

SOL/BTC Shows Breakout, Retest Still Possible

The SOL/BTC chart on the weekly timeframe shows a completed rounded bottom pattern, formed between March and August this year. The breakout above the 0.00185–0.002 BTC range led to a 60% rally, with the price now above 0.0032 BTC.

According to analyst Cas Abbé, a retest may be due after the sharp move up. “SOL/BTC could retest its major support zone,” he said, adding that a return to the breakout level would not be unusual after such a move. The support zone has acted as a pivot area before and may be monitored closely in the days ahead.

In addition, as reported by CryptoPotato, Pantera Capital said that Solana is reaching a major point in its adoption path. The firm pointed to rising attention from fintech firms, developers, and retail users. They also mentioned that institutional exposure to SOL remains low relative to other large-cap assets.

Pantera suggested that if a Solana-based ETF is approved, it could lead to stronger institutional inflows. While the timeline is uncertain, the firm described Solana as being well-positioned in its ecosystem and infrastructure.

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