Will Solana Reach $1,000 Soon? Market Rally Boosts Price, But $160 Remains a Key Hurdle

Cryptocurrency Solana (SOL) is approaching a critical
level with resistance at $160 and price support at $120 on that daily chart,
according to CoinMarketCap. On-chain data also suggests traders are clustering at
these levels, impacting volatility.

While some investors anticipate a breakout, slowing
trading velocity raises concerns over a potential pullback. Will Solana sustain
its momentum, or is a correction imminent? Currently ranked #6 with a market capitalization of
$73 billion, Solana is up 7% and 12% in the daily and weekly chart,
respectively, according to CoinMarketCap.

The boost comes amid an overall positive market
momentum. Bitcoin and Ethereum also went up 2% and 3%, respectively, in the past day. Overall, the crypto market has gained
2% to $2.85 trillion in the past day.

Buyers Defend Support at $120, But Risks Remain

Solana has encountered a formidable barrier at $146,
where approximately 27 million SOL are held, according to Glassnode data. Many
investors bought at or near this level and may sell to break even, reinforcing
the resistance.

Significant resistance appears at $135 (26.6M $SOL) and especially at $144, where 27M $SOL – nearly 5% of supply – is concentrated. On Jan 19, this level already held 20.6M #SOL, meaning many investors may look to exit at break-even, creating selling pressure.

— glassnode (@glassnode) March 19, 2025

Additionally, another resistance cluster at $144 on
the daily chart. These two zones present a significant hurdle for a sustained
rally unless Solana sees a surge in buying momentum. Technically, should the price fail on a further uptrend, Solana risks a
drop toward the $75–$115 range. A break below $100 could accelerate selling, as
liquidity in lower price ranges remains thin.

Another factor adding uncertainty to Solana’s price
action is its declining velocity, which has reached a five-month low. Velocity
measures how frequently SOL changes hands, and a decrease suggests waning
investor engagement.

Market Reaction and Broader Outlook

Solana has surged from a low of around $130, with
trading volume skyrocketing 143% to $3.5 billion. However, Solana must first
overcome immediate resistance before a more significant rally can materialize.
As of now, it remains range-bound between $144 and $120.

Solana’s next move depends on whether it can break
past $144 or hold above $120. If momentum builds, a push above resistance could
signal the start of a new uptrend. Conversely, a break below key support levels may lead
to further downside. Whether Solana will soon reach $1000 depends on trading volume and market sentiment.

This article was written by Jared Kirui at www.financemagnates.com.