TLDR
- SOL has dropped below critical price points at $165 and $150
- A recent bottom formed at $132 before a modest bounce occurred
- Price currently trades under the $145 mark and 100-hour moving average
- Key hurdles for recovery exist at $148 and $155 levels
- Further downside could test support at $132 and possibly $125
Solana has entered a cooling phase after its recent bullish momentum stalled near the $180 price point. The popular blockchain’s native token has experienced downward pressure in line with broader crypto market movements.
The decline began when SOL faced rejection at the $180 level. This rejection triggered a series of lower highs and lower lows. The downward move gathered pace as prices broke below several key support zones.
SOL’s descent took it through the $165 level with relative ease. The selling pressure intensified as the price continued lower, breaking through the psychologically important $150 mark. This breakdown accelerated the downward momentum.
The selling didn’t stop there. SOL continued to slide, eventually finding a temporary bottom at $132. This level represents a substantial decline from recent highs and has caught many traders off guard.
Following this low point, buyers stepped in cautiously. Their efforts pushed the price back above $140 and toward $142. This recovery represents about 23.6% of the entire drop from $180 to $132.
However, sellers regained control as the price approached $152. This rejection confirmed that bears still maintain overall control of the short-term trend. The price action formed a bearish pattern on the charts.
Technical Analysis
Technical analysis shows a breakdown from a rising channel formation. The support of this channel at $144 failed to hold, leading to further weakness in SOL’s price structure. This technical breach suggests continued bearish sentiment.
Currently, Solana trades below both $145 and its 100-hour simple moving average. These technical indicators confirm the bearish bias currently dominating the market. Buyers face significant challenges to reverse this trend.
The immediate resistance sits at the $145 level. Above this, traders will watch the $148 zone closely. The most important resistance appears around $155, which also aligns with the 50% retracement level of the recent decline.
A sustained break above $155 would be needed to shift the momentum. Such a move could open the path toward $162 and potentially $175 if buying pressure increases. However, this scenario faces substantial hurdles.
On the downside, initial support can be found near $136. Below this level, the recent low of $132 becomes critical. A breach of this support could trigger further selling in the coming sessions.
If $132 fails to hold, the next support level to watch is $125. A close below this price point would likely bring the $120 level into focus. Technical indicators currently lean bearish, supporting this cautious outlook.
The hourly MACD indicator shows decreasing bearish momentum. However, it remains in negative territory, suggesting sellers retain an advantage. The hourly RSI reading stays below 50, confirming the bearish control.
Trading volume patterns during this decline show increased activity during breakdowns. Volume typically spikes at key support failures, indicating strong selling pressure. Current volume remains moderate as the price consolidates.
The broader crypto market context matters for SOL’s outlook. Similar patterns have emerged across major cryptocurrencies, suggesting market-wide factors rather than Solana-specific issues. Correlation with Bitcoin and Ethereum remains high.
For traders, these key levels offer important decision points. The $148 and $155 resistance zones provide potential selling opportunities for bears. Meanwhile, bulls might look for buying opportunities near $136 and $132 support levels.
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