- SOL was up 14%, but the recovery faced a roadblock at $235.
- Will the liquidity level at $245 trigger a breakout from the downtrend channel?
After peaking at a new all-time high of $264, Solana [SOL] cooled off and shed over 20% of its value in three weeks.
In December, SOL attempted to reverse recent losses. At press time, it was up 14% after retesting March highs as support. But can it breach its downtrend and extend the recovery?
Solana price prediction: Will SOL reverse its downtrend?
Source: SOLUSDT, TradingView
In November, SOL price consolidated at March highs of $210 before climbing to an ATH of $264. Retesting the level as support meant it was a key level going forward.
However, recent recovery attempts were rejected at the range-highs of the downtrend channel. At press time, the upper levels coincided with $235.
A decisive move above $235 could break the short-term downtrend and reinforce a bullish target of $248 or $264.
That said, the RSI hasn’t decisively soared above the neutral level throughout December. This muted demand could delay a strong breakout prospect for SOL.
So, another price rejection at the range high could drag SOL back to the middle level or March highs.
