Solana price forecast: SOL eyes $170 after sweeping the August 4 low
Solana's SOL cryptocurrency experienced a downturn, dropping to $146 on Tuesday, but has since recovered to $159, showing a 5% increase. The broader cryptocurrency market, including Bitcoin and Ethereum, is also recovering. SOL's technical indicators suggest a bearish trend, but a recovery could push its price towards $170 or higher. Failure to defend $150 may result in further dips to $136. The market shows signs of switching to bullish momentum, possibly driving further gains.
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Introduction: Recent Performance of SOL
Solana’s SOL is down by 1% in the last 24 hours and is now approaching the $160 mark after experiencing a drop to $146 on Tuesday. The cryptocurrency has shown potential for recovery and could climb back to the $170 mark if the positive trend continues.
Tuesday's Dump and Recovery
The native coin of the Solana ecosystem, SOL, hit a low of $146 on Tuesday, sweeping levels last seen on August 4th. However, the coin has since started a recovery, gaining nearly 5% in value and is now trading at $159 per coin. This recovery aligns with the broader cryptocurrency market rebounding from earlier losses.
Market-Wide Recovery Observations
Bitcoin (BTC) briefly dropped below the significant $100k mark on Tuesday but has since recovered to trade above $102k per coin. Similarly, Ether (ETH) tested the psychological level at $3,000, but it is now trading above $3,300 per coin. These recovery trends provide a positive backdrop for SOL’s potential rebound.
Technical Analysis: Current Trends in SOL
The SOL/USD 4-hour chart remains bearish as the cryptocurrency has underperformed in recent days. Despite this, there are signs of recovery indicated by a Relative Strength Index (RSI) of 32, suggesting that SOL is in the oversold region. This could create an opportunity for a short-term rally. Additionally, MACD lines remain within the bearish region, pointing to continued selling pressure. However, momentum hints at potential improvements in the near term.
Potential Price Movements
If the recovery continues, SOL could rise to the first major resistance level at $170 in the next few hours. A more extended bullish movement could push the price to target the swing high at $188. Conversely, failure to sustain the price above the $150 psychological support level might result in a dip towards the June 27 low of $136. Currently, the trend appears to be switching bullish, and buyers may regain control of the market. If the daily levels hold, a stronger rally could occur in the hours and days ahead.