Solana December 16 Price Prediction: Key Level for SOL Price Recovery

Notably, over the past 24 hours, Solana dropped about 4.7% to $125.91, with an intraday trading range of $124.08 to $134.26. This range indicates that buyers attempted to push the price higher but were blocked by sellers. It also shows that as the price approached below $124, buyers re-entered the market, and even after the initial drop, volatility remained high.

This movement also occurred in a relatively deep market: SOL's market cap is close to $71.15 billions, with a 24-hour trading volume of about $5.6 billions. Over the past 7 days, SOL has fallen by about 4.5%, and by about 0.8% over the past 14 days. This range-bound movement suggests that Solana is currently caught between dip buyers and sellers still holding onto the rebound.Solana launchprice increase?

Can Solana Test Higher Levels?

According to the TradingView chart, Solana is currently trading below the first Fibonacci retracement level of $126.48 (0.236), indicating that sellers still dominate the price action. However, a green candle can be seen attempting to move toward this resistance level.

Solana Daily Chart

If the price can reclaim $126.48, the next upward areas to watch are $128.18 (0.382) and $129.55 (0.5). If the rebound momentum is stronger, then $130.92 (0.618) will become the focus, followed by $132.88 (0.786) and the previous high of $135.37 (1.0). For further upside extension, $142.56 (1.618) is a longer-term target, which can only be achieved if momentum fully turns bullish.

According to the Chande Momentum Oscillator (9), momentum remains weak, with the indicator near -32 and below the zero axis. This suggests that although price action has started to stabilize, bearish pressure still exists. For the rebound to be more convincing, the oscillator needs to reverse toward the zero axis, which would indicate that selling power is weakening and buyers are regaining dominance.

On the downside, the key support area is around $123.73, with psychological support near $124. If this area is effectively breached, the next downside risk points to the $122 region.

This is Solana's Entry Zone

Analyzing social media comments, analyst Kamran Asgharsaid on Xthat he believes traders "should not fall into the trap," as he thinks Solana is brewing a liquidity sweep. In his view, SOL may dip below $130 to trigger stop-losses ("stop-loss hunting"), then quickly rebound to that price level.

Solana Forecast

He also pointed out a deeper downside scenario: the price drops to the $100 support area, which he views as the "manipulation" phase in his trading strategy. Asghar claims that before any larger rebound attempt, this area would be the best entry point in his theory.

He predicts that after hitting this entry point, SOL will [surge] and fall back to the distribution zone, then rush toward the area above $220. To rise from $125.91 to $220, Solana would need to [increase] by about 74.7%.