Solana defends the $120 support while a crypto analyst warns of a possible drop to $75

Source: Yellow Original Title: Solana defends the $120 support while a crypto analyst warns of a possible drop to $75

Original Link: https://yellow.com/es/news/solana-defiende-el-soporte-de-120-dólares-mientras-un-analista-cripto-advierte-de-una-posible-caída-a-75-dólares Solana (SOL) traded near $123 on Friday, as the critical support level of $120 faces repeated tests.

A breakdown below this threshold could trigger a sharp decline to $75, according to cryptocurrency analyst Crypto Patel.

The token gained 1.4% in 24 hours despite the overall weakness in major cryptocurrencies.

Solana’s market capitalization stands at $69.7 billion, with a daily trading volume of $1.68 billion.

What happened

Solana has defended the $120 zone since late November, while sellers have repeatedly tested this support.

Patel outlined a two-stage scenario on X: a short-term drop to $75 if support breaks, followed by a rise toward $500.

The analyst emphasized that markets rarely move in a straight line and questioned whether SOL should reach $75 before any rally toward higher targets.

Technical charts show a double bottom formation near $121 to $122.

The price recently broke above a descending trendline from the last high, suggesting potential short-term strength.

The range of $125 to $126 represents the immediate resistance where previous rebounds were halted.

Several technical indicators point to oversold conditions on shorter timeframes.

However, Solana remains below its 20, 50, 100, and 200-day exponential moving averages.

The 20-day EMA, around $127.60, acts as the first major resistance barrier.

Why it matters

The $120 level has become a critical battleground that determines Solana’s short-term trajectory.

Repeated tests of support often precede a decisive breakdown or a strong rebound.

A close below $120 would invalidate the double bottom pattern and likely accelerate selling pressure toward lower support zones.

Conversely, regaining the $127 to $128 zone would neutralize recent weakness and reopen bullish potential.

Despite price difficulties, Solana’s network fundamentals remain solid.

Spot volume on DEXs for Solana more than doubled year-over-year to $343 billion in Q3 2025 from $159 billion in Q3 2024.

This disconnect between falling price and increasing network activity suggests that technical factors, rather than fundamental deterioration, are driving the current weakness.