TLDR:
- SOL is consolidating around $125 after declining from a high of $140
- A key support level at $117-$122 is being tested, which has held for over a year
- Technical indicators show bearish divergence on the weekly RSI despite current level at 40
- Major resistance levels are at $126, $128, and $132
- Two possible scenarios: rebound toward new highs or breakdown below $117 leading to further decline
Solana, the popular cryptocurrency, is facing a crucial moment in its price action. After reaching highs near $140 recently, SOL has entered a consolidation phase near the $125 level. Traders are closely watching key support and resistance zones that could determine the next major move.
The cryptocurrency started a fresh decline, dropping below several support levels including $135 and $132. This downward movement mirrors similar patterns seen in other major cryptocurrencies like Bitcoin and Ethereum during the same period.
SOL price fell as low as $122.64 before finding support. Since hitting this low, the cryptocurrency has entered a period of consolidation. A rising channel has formed on the hourly chart with support around $124.
On the upside, Solana is facing resistance near $126 and the 100-hourly simple moving average. If bulls can push above this level, the next major resistance zones are at $128 and $132. These levels represent key Fibonacci retracement points from the recent downward move.
For a confirmed bullish reversal, SOL needs to close above the $132 resistance zone. Such a move could set the stage for another steady increase toward $136, with potential to reach $142 if momentum builds.
Technical Indicators Point to Mixed Signals
Technical analysis shows some concerning signs for SOL despite the consolidation. There’s bearish divergence on the weekly Relative Strength Index (RSI), where price formed a higher high while the RSI printed a lower high. This typically signals declining bullish momentum.
#Solana – Unbiased Analysis
Solana hit a new all-time high of $295 this cycle but failed to hold above it.
A massive bearish divergence is in play on the weekly chart, and the price is now testing a key horizontal support that has held strong for the past year.
The 1.618… pic.twitter.com/X1QCVaF0Kn
— Mags (@thescalpingpro) March 31, 2025
Currently, the hourly RSI for SOL/USD is above the 50 level, suggesting some short-term strength. Meanwhile, the MACD indicator is losing pace in the bearish zone, showing mixed signals for traders.
The RSI currently stands at 40, a level that has historically aligned with local bottoms during SOL’s previous corrections. In multiple instances, this RSI zone has coincided with the beginning of upward movements.
Another technical indicator, the Parabolic SAR, shows dots shifting below the price. This suggests a possible trend reversal to the upside might be forming, though confirmation would require additional price action.
Key Support Levels in Focus
The $117-$122 range represents a critical support zone for Solana. This area combines horizontal support with the 1.618 Fibonacci level and has held firm for over a year. How SOL reacts at this level may define its medium-term direction.
If SOL fails to maintain these support levels, further decline could target the $115 zone. A close below this level might send the price toward $102 in the near term. This would likely weaken bullish sentiment and could lead to extended downside movement into 2025.
Recent selling pressure has intensified after SOL lost its $125 support level. Reports indicate a whale offloaded over $7.6 million in SOL, adding to the bearish momentum as technical patterns point to further possible downside.
Volume will play a key role in confirming the next direction. Strong buying volume would support a bounce from current levels, while weak volume might validate the bearish divergence signals.
In the bullish scenario, Solana would rebound strongly from current support, backed by increasing RSI and volume. This could lead to a renewed upward push, potentially testing previous highs in the current market cycle.
For now, Solana price is at a crossroads with clear technical levels to watch. The bounce from the recent low of $122 and stability above $125 signals short-term bullish momentum that could hint at a relief rally if buying pressure continues.
The cryptocurrency market will be watching SOL’s reaction to these key levels in the coming days to determine whether the recent decline was merely a correction in a larger uptrend or the beginning of a more sustained downward move.
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