Solana Price Rebounds 6% Amid Quantum Security Test & $100M Investment

The recent price uptick for Solana (SOL) follows a concerning dip below the crucial $120 support level. According to Chris MacDonald, an analyst at The Motley Fool, two key developments have fueled the resurgence. The first is a forward-looking security initiative by the Solana Foundation. As reported by Bitcoinist, the foundation, in collaboration with security firm Project Eleven, has launched a quantum-resistant testnet. This move follows a comprehensive threat assessment and aims to evaluate the network’s resilience against potential future threats from quantum computing technologies, addressing a long-term concern for the blockchain ecosystem.

The second catalyst providing tangible buy-side pressure is a corporate investment announcement. Health and wellness company Mangoceuticals revealed plans to allocate $100 million toward acquiring and holding SOL. This substantial commitment represents a significant vote of confidence in the asset and provides a concrete source of demand amidst broader market uncertainty. These fundamental developments have helped counter the bearish sentiment that emerged when SOL threatened to break down toward the $100 threshold.

Despite the encouraging 6% gain, technical indicators suggest the recovery may face significant headwinds. Analysts note that Solana’s price is currently following a “clean corrective structure.” The moving averages, key tools for identifying trends, are all positioned above the current trading range, signaling sustained selling pressure. The 50-day simple moving average (SMA) sits around $143, while the longer-term 200-day SMA looms even higher at approximately $170. This configuration indicates a prevailing downtrend rather than a healthy consolidation phase.

In the near term, the 20-day exponential moving average has rolled over near $133 and has consistently rejected previous bounce attempts. Experts caution that until SOL can achieve a decisive daily close above the low-$130s for an extended period, any rebounds are likely to be viewed as mere counter-trend movements. For a more sustained recovery, the price would need to clear stronger resistance clustered between $144 and $147, ideally supported by increased trading volume, to pave the way toward the $160 to $165 range.

The immediate battle for Solana’s price action is defined by specific support and resistance zones. On the downside, immediate support lies just below current levels at the $125 mark. Below that, the $121 to $120 range is identified as a critical demand zone, followed by another significant area around $110. The market has already registered an eight-month low near $116.9, and a decisive close beneath that level could trigger a swift move toward the psychologically significant $100 mark. As reported by NewsBTC, a more severe downturn could even push prices into the high $90s, with projections indicating a potential dip to around $80 if liquidations accelerate.

On the upside, initial resistance is clustered in the $133 to $138 range, which aligns with the rejected 20-day exponential moving average. The stronger, more formidable resistance band lies between $144 and $147. A daily close above this second group of levels is viewed by analysts as a necessary condition to confirm a shift in momentum and facilitate a more robust price recovery. The chart from TradingView.com illustrates this challenging technical landscape, where every gain is met with substantial overhead supply from earlier investors looking to exit.