Solana (SOL) Tests Liquidity Levels As Market Eyes $300 Target Before Christmas

Solana (SOL) has faced a 23% retrace after hitting new all-time highs at $264, testing the resilience of bullish momentum.

Solana (SOL) price has retraced 24% after setting a new all-time high at $274. This retrace has tested the strength of the bullish momentum. However, SOL’s price structure remains bullish, as the token continues trading above a crucial demand zone. This consolidation signals the market is preparing for another potential breakout as bullish sentiment remains strong.

Jelle, a renowned crypto analyst and investor, recently shared a technical analysis on X, expressing optimism about Solana’s future price trajectory. According to Jelle, the retrace is a healthy correction that allows SOL to build the strength needed for another significant rally. He predicts that Solana will reach new all-time highs before Christmas, setting the stage for an exciting close to the year.

Solana’s ability to maintain levels above $210 is significant, as this critical support previously acted as resistance. The price behavior at this level signals a healthy retrace, allowing the market to reset before another potential move higher.

Solana (SOL) price is currently trading at $240, having encountered resistance at $246. This level has been crucial in maintaining bullish momentum and preventing a deeper retrace. SOL’s ability to trade within this range suggests bullish strength.

However, if SOL fails to break its all-time high (ATH) in the coming weeks, the possibility of a prolonged consolidation phase increases. This scenario could see SOL trading rangebound, as traders await clearer market direction. Such a consolidation phase would not necessarily be bearish but could delay the anticipated rally.

For Solana to meet Jelle’s $300 target, bulls must reclaim and hold levels above the ATH, signaling strength and renewed buyer interest. If successful, Solana will enter price discovery once again, securing its position as a top-performing crypto asset in the current market cycle.