Solana (SOL) has recently experienced a retracement following its impressive rally fueled by the excitement around the approval of a Bitcoin exchange-traded fund (ETF). The price of SOL has dipped, and currently, over 14% of the token's total supply is concentrated at the $144 level. For SOL holders and investors, maintaining this crucial support level at $144 is essential to prevent a further and more significant correction in the cryptocurrency's price.

The significant concentration of the token's supply at the $144 mark indicates that many investors have bought SOL at this price point. As a result, this level has now become a key support level for the cryptocurrency. If the price of SOL drops below $144 and fails to hold this level, it could trigger a deeper correction, potentially leading to further price declines.

Maintaining key support levels is essential for the overall health of a cryptocurrency's price action. Support levels act as barriers that prevent the price from falling further and signal a level where buyers are willing to step in and purchase the asset, providing some stability to the market.

In the case of Solana, the $144 level has now become a critical support level that investors are closely monitoring. If SOL manages to hold above this level and attract buying interest, it could signal strength in the cryptocurrency and pave the way for a potential recovery in its price.

On the other hand, if SOL fails to hold the $144 support level and experiences a breakdown below this point, it could lead to increased selling pressure and trigger a more significant correction in the price of the cryptocurrency. In such a scenario, SOL could potentially face further downside risk, with the next support levels to watch being $130 and $120.

As always, cryptocurrency markets are known for their volatility, and price movements can be swift and unpredictable. Investors and traders in SOL should keep a close eye on key support levels and market dynamics to make informed decisions about their positions.

In conclusion, the $144 support level is currently a crucial level for Solana, and the cryptocurrency's ability to hold above this mark will be closely watched by market participants. Maintaining this support level could be key to avoiding a deeper correction in SOL's price, while a breakdown below $144 could signal further downside risk for the cryptocurrency.

Source: https://cointelegraph.com/news/sol-etf-news-gain-evaporates-while-chart-warns-of-another-20percent-drop?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound