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SOL Price Down 14% in a Week, Can Solana Push Back Above $200 in January?

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Solana (SOL) is currently at a critical juncture. The past few weeks have been serious for SOL, with significant price fluctuations and bearish sentiment. 

As of January 14, 2025, SOL has experienced a notable decline of approximately 13% over the past week and more than 20% since January 6. 

However, this downturn reflects a broader trend affecting the cryptocurrency sector, where many assets face selling pressure. For instance, BTC dipped below $90,000 yesterday, dipping as low as $89,150.

The recent market price action has drawn attention to Solana’s technical setup, particularly the formation of a symmetrical triangle pattern on the charts. 

https://www.tradingview.com/symbols/SOLUSD

This pattern indicates traders’ indecision and suggests that SOL could either break out of this formation to reclaim higher prices or further decline into bearish territory.

As investors anticipate Jan 20th, the day of Donald Trump’s inauguration, can $SOL reach $200 before the end of January?

Solana’s Current Market Position: Is The Dip Beyond Rebound?

Solana’s market position is precarious as it tests key support levels because of the ongoing bearish sentiment. 

The altcoin is currently hovering around the daily 200 exponential moving average (EMA), which has historically acted as a stronghold for bullish reversals.

Maintaining a price above $185 is essential for SOL to signal a potential rebound; failure to do so could lead to further declines toward the next major support zone, which is approximately $185.

Fortunately, at the time of writing, SOL is trading at approximately $188, up by over 6% in the past 24 hours. This sudden gain can be attributed to the recent news around Solana. 

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https://www.tradingview.com/symbols/SOLUSD

Notably, U.S. Representative Guy Reschenthaler disclosed his crypto purchases, including Solana. This points to a growing interest from lawmakers and serves as a positive reminder for traders. 

Additionally, MoonPay acquired Helio, a payment app built on Solana, for $175 million. This acquisition also points positively towards the integration of crypto into mainstream financial systems. 

This acquisition aims to enhance payment services for merchants and creators using cryptocurrencies.

Despite these positive developments, analysts caution that Solana faces significant hurdles ahead. 

The technical indicators for SOL reveal a cautious market and external factors that may influence Solana’s price action in the coming weeks.

Technical Analysis: Can SOL Reclaim $200?

Analysts have identified critical price levels that will dictate SOL’s near-term movements. 

Analysts like Ali Martinez recently suggested that a decisive move above $214 or below $183 could trigger significant price movements—potentially around 40% in either direction. 

SOL which is currently trading near $190, its ability to hold above critical support levels will be crucial in determining its short-term trajectory.

As Martinez explained, a breakout above the upper boundary of the symmetrical triangle could push SOL towards resistance levels around $240 or even higher if bullish momentum accelerates. 

Conversely, a breakdown below $183 would signal increased bearish pressure, potentially driving prices down toward $155 or lower.

If market conditions improve and regulatory clarity emerges as expected with the Trump office takeover, Solana’s price could substantially increase sooner. 

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In fact, many have predicted that, in the long term, SOL could reach between $380 and $450 in the first half of the year if positive catalysts materialize, such as successful ETF approvals or significant network upgrades.

On-chain metrics also indicate that Solana continues to dominate decentralized exchange (DEX) trading volumes compared to Ethereum.

https://defillama.com/dexs/chains

To answer the question, can SOL push back above $200 in January? Yes. Based on the technical indicators above and the anticipated upcoming Trump pump, SOL can claim back the $200 mark and beyond.

Solaxy: The Future of Meme Coins on Solana

As Solana faces its current challenges, Solaxy ($SOLX), the first Layer-2 solution on Solana dedicated to meme coins, presents an exciting opportunity. 

This project was launched on December 14, 2024, and within just a few days of its announcement, it has already raised over $10 million during its presale phase.

But why is Solaxy gaining this much attention?

Solaxy stands out by tackling network congestion, which is an ongoing challenge for many blockchain networks, including Solana itself. 

Solaxy is utilizing Layer 2 technology to enhance transaction processing capabilities while maintaining compatibility with the existing infrastructure of Solana.

This innovative and revolutionary approach ensures seamless operations even during peak traffic periods associated with meme coin trading.

Currently, $SOLX is priced at $0.0016 per token. Early adopters are incentivized with staking opportunities, offering a rare 708% annual percentage yield (APY). 

With over 3.3 billion $SOLX tokens staked, confidence in this project is widely growing.

Investors looking for growth should consider participating in Solaxy’s presale before it concludes before the end of Q1 this year.

Visit Solaxy Here

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