TLDR
- Solana has recovered over 12% following Trump’s announcement of a 90-day pause on tariffs
- Technical indicators like RSI, BBTrend, and EMA suggest bearish pressure remains despite the rebound
- SOL faces strong resistance at $120, struggling to break through this key level
- Technical analysis shows support zones at $112, $110, and $100
- The price formed a base above $100 support and broke above a bearish trend line at $107
Solana (SOL) has shown significant price movement in recent days, gaining momentum and rebounding over 12% after forming a base above the $100 support zone. The cryptocurrency has been trading above $105 and the 100-hourly simple moving average.
The upward movement came after Trump announced a 90-day pause on tariffs, which provided some relief to the broader crypto market.
SOL broke above a connecting bearish trend line with resistance at $107 on the hourly chart, pushing toward the $120 resistance zone. A high was formed at $120.10 before the price began retreating.
The cryptocurrency successfully cleared several resistance levels at $105, $110, and $112 during this upward movement.
Currently, Solana is consolidating gains and facing challenges at higher levels, particularly at the $118-$120 resistance zone.
Technical Indicators Suggest Caution
Despite the recent price increase, technical indicators continue to flash warning signs for SOL investors.
The Relative Strength Index (RSI) is currently sitting at 45.52, hovering in neutral territory but remaining below the midline of 50 for nearly two days. This comes after the RSI briefly dipped to an oversold level of 21.53 two days ago.
While extreme selling pressure has eased, the RSI’s slow climb back toward neutral suggests that bullish momentum has not yet taken control of the market.
The BBTrend indicator is currently at -14.19, having turned negative since yesterday, and is at its lowest level since March 13—nearly a month ago. This shift into deeper negative territory suggests that bearish momentum is building once again after a period of relative stability.
The hourly MACD for SOL/USD is losing pace in the bullish zone, adding to the cautious outlook.
Support and Resistance Levels to Watch
On the upside, Solana is facing immediate resistance near the $118 level. The next major hurdle is the $120 mark, which appears to be a strong psychological and technical resistance point.
If SOL can successfully close above $120, the next resistance levels to watch would be $125 and $132. Breaking above these could potentially send the price toward the $140 level.
On the downside, initial support can be found near the $112 zone. The first major support is at the $110 level, which coincides with the 50% Fibonacci retracement level of the recent upward move from $101.24 to $120.10.
A break below $110 might send the price toward the $105 support zone. If Solana fails to hold above $105, we could see a decline toward the $100 level in the near term.
The current EMA setup continues to reflect a bearish structure, with short-term moving averages remaining below long-term ones. This alignment confirms that downward momentum is still in control.
If the bearish trend persists, Solana could revisit support near $95, a level that has previously acted as a short-term floor. Losing this level would be technically significant, potentially pushing SOL below $90—territory not seen since January 2024.
The overall outlook suggests that while Solana has shown a strong recovery, the cryptocurrency is at a critical juncture where it needs to overcome the $120 resistance to confirm a stronger bullish trend.
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