As Solana (SOL) attempts to reclaim a crucial level, a market watcher forecasted a massive rally for this quarter. However, some analysts suggested that the cryptocurrency will retest the range lows soon.
On Tuesday, Solana surged 9.6% from the recent lows, driven by the start of Solana Mobile’s global shipments of the Seeker, its second-generation Web3 smartphone, to over 50 countries.
During the June correction, SOL momentarily lost its local range lows, retesting the $120-$130 zone as support. However, the cryptocurrency reclaimed its range amid the July rally, briefly breaking out of the upper boundary and hitting a five-month high of $206 two weeks ago.
According to the chart, the key support area for the altcoin is around the $165 mark, where the largest supply cluster is with 44.4 million SOL, or 7.42% of the supply. As a result, Solana must reclaim the $165 level soon, or it will risk turning this key level into a key resistance, leading to further downside.
Nonetheless, if this level is reclaimed, then the altcoin would have to retest the crucial resistance levels around $177 and $189, where investors have also accumulated 27.6 million and 23.6 million SOL, respectively.
Per the chart, the cryptocurrency has bounced from this support line twice, in April and June, before rallying to local highs during the May and July price breakouts.
As of this writing, Solana is trading at $$163, a 3.3% decline in the daily timeframe.
