The cryptocurrency market experienced a significant downturn this weekend, largely due to geopolitical tensions in the Middle East. The recent conflict between Iran and Israel triggered panic selling among investors, causing a widespread correction in major cryptocurrencies, including Solana. However, the Solana price has found support at the $120 level, preventing a more significant decline.

Solana's Key Trendline Holds Against Market Downturn

In the past two weeks, Solana's price has experienced a sharp sell-off, dropping from $204 to a low of $116. This significant correction can be attributed to the fear, uncertainty, and doubt (FUD) surrounding the upcoming Bitcoin halving or the escalating geopolitical tensions in the Middle East.

However, the falling Solana price has found support at the $120 level, which coincides with an ascending trendline that has been in place for the past five months. The coin has rebounded three times from this dynamic support level, indicating that traders are actively accumulating this asset during market dips, a sign of a potential rally.

On April 13th, the Solana price displayed a long-tail rejection candle at this critical trendline, suggesting that buyers are still defending this support level. The coming week will be crucial for Solana to demonstrate its ability to sustain its price above $120.

If Solana can reverse its trend from this support level, buyers may challenge the immediate resistance of $162, potentially setting the stage for a higher rally. A successful breakout could push Solana's price above its previous high of $210.

Technical Indicators

1. Vortex Indicator: A large gap between the VI- and VI+ slope indicates that sellers are currently more aggressive.

2. Exponential Moving Average: Solana's price trading above the 100- and 200-day EMAs suggests that the broader trend remains bullish.