News 
January 29, 2025 
3 min. 
The cryptocurrency market leader Solana (SOL) is showing signs of weakness as it struggles to maintain crucial support levels, raising concerns among investors about potential further downside. After failing to breach the significant $260 resistance zone, SOL has entered a concerning downward trajectory that mirrors similar movements in major cryptocurrencies Bitcoin and Ethereum.
Technical Analysis Points to Potential $200 Test Amid Bearish Pattern
Recent market data reveals that SOL has broken below several critical support levels, with the digital asset experiencing a sharp decline that pushed prices as low as $225. The token is currently consolidating below the psychologically important $240 mark and the 100-hourly simple moving average, suggesting deteriorating market sentiment.
Technical indicators paint a cautious picture, with a notable bearish trend line forming at the $235 resistance level on hourly charts. This technical formation, coupled with SOL’s inability to sustain momentum above key Fibonacci retracement levels, has many analysts warning of potential further losses ahead.
Critical Support Levels Under Watch as Markets Digest Recent Moves
Market observers are closely watching the $222 support level, which appears to be a crucial threshold. A decisive break below this point could trigger a cascade of selling pressure, potentially driving SOL toward the $212 zone. Still, what is concerning for most investors is the selling pressure which seems to put the asset closer to the important $200 support level.
However, it is not all dire prospects for Solana holders. The asset maintains potential upside situations as well, with important resistance levels placed at $242 and $250. If we manage to break above these levels, particularly close above $250, it could invigorate bullish momentum and aim prices towards the $275 level.
While the market continues to digest this news, traders should keep an eye on the key technical levels for possible trend changes. These following days may be important in deciding whether SOL is able to defend its price range or more pain is coming.
