Solana has pulled back into a key demand zone, a level that could determine whether its strong trend continues or falters. How price reacts here will be crucialSolana has pulled back into a key demand zone, a level that could determine whether its strong trend continues or falters. How price reacts here will be crucial

Solana Returns To A Critical Demand Zone — Trend Reload Or Breakdown Risk?

2026/02/04 08:00
3 min read

Solana has pulled back into a key demand zone, a level that could determine whether its strong trend continues or falters. How price reacts here will be crucial, as a hold may signal a trend reload, while a breakdown could push SOL into broader market chop.

Solana Returns To A Critical Weekly Demand Zone

Giving an update on the weekly timeframe, Cyril-DeFi explained that Solana has been one of the standout performers this cycle. Still, price has now returned to a critical demand zone that could determine its next major move. According to Cyril, this area has historically acted as a pivot point where momentum either re-ignites or fades.

This is the type of zone where strong trends tend to reload if buyers successfully defend it. However, a failure to hold would suggest that the prior strength is losing traction, increasing the risk that the trend structure begins to deteriorate.

Solana

From Cyril’s perspective, a firm hold at current levels would position Solana to lead the next altcoin impulse, reinforcing its relative strength against the broader market. On the other hand, losing this demand zone would likely see SOL slip into extended consolidation, moving in line with the wider market chop rather than outperforming it. Cyril-DeFi concluded by stressing that he is closely observing how the price behaves around this area instead of trying to predict outcomes in advance. 

The Only High-Conviction Long Setup On The Table

According to a recent Solana post shared by Ardi, only one long setup stands out as technically sound under current conditions. With the market still under pressure, waiting for confirmation seems safer than attempting to anticipate a bottom, as premature entries tend to get punished in weak structures.

Ardi highlighted the $119 level as a key pivot for Solana. A successful reclaim of this zone, ideally through a spring or brief fakeout below resistance, could signal that demand is returning. If that occurs, price could surge higher toward the top of the range on a macro lower high rally rather than a full bullish reversal.

From a risk-to-reward standpoint, this reclaim scenario remains the most attractive option available. It provides a clear technical trigger, defined invalidation, and a logical upside target, allowing traders to participate without overexposing themselves in an uncertain environment.

He also outlined an alternative strategy involving the 200-week simple moving average around the $100 mark, an area that previously acted as macro support in April 2025. Still, Ardi cautioned that in a broader downtrend, odds are often against traders until a major level is reclaimed, making a decisive move back above $119 crucial before confidence can truly return.

Solana
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Tags:

You May Also Like

Regulatory Clarity Could Drive 40% of Americans to Adopt DeFi Protocols, Survey Shows

Regulatory Clarity Could Drive 40% of Americans to Adopt DeFi Protocols, Survey Shows

Over 40% of Americans express willingness to use decentralized finance (DeFi) protocols once regulatory clarity on crypto privacy emerges, according to a recent survey from crypto advocacy organization the DeFi Education Fund (DEF). The survey, released on September 18, revealed that many Americans feel frustrated with traditional financial institutions and seek greater control over their financial assets and data. Respondents believe DeFi innovations can deliver this change by providing affordability, equity, and consumer protection. The survey was conducted with Ipsos on KnowledgePanel and included supplementary in-depth interviews in the Bronx and Queens between August 18 and 21, polling 1,321 US adults. Survey Results Show Americans Ready to Adopt DeFi Protocols The findings demonstrate that many Americans are curious about DeFi despite its early stage. 42% of Americans indicated they would likely try DeFi if proposed legislation becomes law (9% extremely/very likely and 33% somewhat likely). 84% said they would use it to “make purchases online,” while 78% would use it to “pay bills.” According to the survey, 77% would use DeFi protocols to “save money,” and 12% of Americans are “extremely” and “very” interested in learning about DeFi. Moreover, nearly 4 in 10 Americans believe that DeFi can address high transaction and service fees found in traditional finance (39%). Consistent with other probability-based sample surveys, the Ipsos x DEF research shows that almost 1 in 5 Americans (18%) have owned or used crypto at some point in their lifetime. Nearly a quarter of Americans (22%) said they’re interested in learning more about nontraditional forms of finance, such as blockchain, crypto, or decentralized finance.Source: DEF The research shows that more than half (56%) of Americans want to reclaim control of their finances. Americans are interested in having control over their money at all times, and many seek ways to send or receive money without intermediaries. One Bronx, NY resident shared his experience of needing to transfer money between accounts, but the bank required him to certify the transfer and visit in person because he couldn’t move the amount he needed remotely. He expressed frustration about the situation because “it was my money… I didn’t understand why I was given a hard time.“ More than half of surveyed Americans agree there should be a way to digitally send money to people without third-party involvement, and this number rises notably for foreign-born Americans (66%). The researchers concluded that Americans are interested in DeFi and believe DeFi can reduce friction points in today’s financial system. Regulatory Developments on DeFi Adoption in the U.S Last month, DeFi Education Fund called on the US Senate Banking Committee to rethink how it plans to regulate the decentralized finance industry after reviewing its recently published discussion draft on a key crypto market-structure bill. The response, signed on behalf of DeFi Education Fund (DEF) members including a16z Crypto, Uniswap Labs, and Paradigm, argued the Responsible Financial Innovation Act of 2025 (RFA) bill should be crafted in a more tech-neutral manner. The group also emphasized that crypto developers should be protected from “inappropriate regulation meant for intermediaries,” and that self-custody rights for all Americans are “essential.” The banking committee is now working on the discussion draft to help ensure it builds on the Digital Asset Market Clarity Act of 2025. The goal is to promote innovation in the $162 billion DeFi industry without compromising consumer protections or financial stability. On September 5, US Federal Reserve Governor Christopher Waller said there was “nothing to be afraid of” about crypto payments operating outside the traditional banking system. This statement has raised hopes among many that DeFi would soon become the new financial infrastructure for Americans and the world
Share
CryptoNews2025/09/18 21:29
Michael Burry’s Bitcoin Warning: Crypto Crash Could Drag Down Gold and Silver Markets

Michael Burry’s Bitcoin Warning: Crypto Crash Could Drag Down Gold and Silver Markets

TLDR Michael Burry warned that bitcoin’s drop below $73,000 may have forced institutions to sell up to $1 billion in gold and silver to cover crypto losses Burry
Share
Coincentral2026/02/04 15:28
Michelin-starred dimsum chain Tim Ho Wan doubles HK footprint with 10th store

Michelin-starred dimsum chain Tim Ho Wan doubles HK footprint with 10th store

For Tim Ho Wan’s chief executive officer Young Sheng Lee, the brand’s aggressive expansion in its home turf helped create a proven growth model that can be replicated
Share
Rappler2026/02/04 15:27