Solana’s breakdown may not be the end | Credit: Hameem Sarwar
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Key Takeaways
SOL trades around $142 after breaking key support, with early signs of a short-term rebound.
Indicators show easing bearish pressure and growing buyer interest.
Resistance sits at $162.72, $180, and $207.93; losing support at $134.79 could deepen the downtrend.
Solana’s (SOL) price has slipped below a key support level, forcing bulls to go on the defensive as the asset attempts to stabilize and mount a recovery.
Despite the recent downturn, buyers have not fully retreated. Hence, early signs of renewed momentum are emerging across multiple indicators.
At the time of this writing, SOL’s price hovers around $142.1
With SOL now battling to reclaim the crucial $200 mark, here is what could be next for the altcoin.
SOL Keeps Struggling
On the 4-hour chart, Solana’s Money Flow Index (MFI) stands at 58.11, indicating that despite the recent breakdown, buying interest has not completely waned.
Its position in the upper neutral zone shows that liquidity is still flowing into the asset, even as price action struggles to reclaim lost ground.
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The Relative Strength Index (RSI) paints a more cautious picture at 43.94, reflecting intense recent bearish pressure.
However, its recent movement shows growing short-term buying momentum. If the RSI continues toward the neutral 50 line, it could create room for further gains.
On the daily chart, Solana’s price has started recovering after hitting its immediate support zone of $136.04. A visible green candle has formed, and several technical indicators are beginning to ease amid strong bearish momentum.
The Moving Average Convergence Divergence (MACD) shows that its red histogram bars are fading, indicating that selling pressure may be weakening.
As the histogram shrinks, it suggests that the momentum driving the recent downtrend is easing, even though the MACD remains in negative territory.
This pause in selling pressure could create room for a short-term bounce, especially if buyers step in at key resistance levels.
SOL’s Chakin Money Flow shows a similar trend. While still in negative territory, the indicator is moving upward, suggesting that buyers are still struggling to absorb selling pressure.
This gradual shift in market sentiment could lead to increased buying activity, potentially supporting a short-term recovery in SOL’s price and pushing it toward its immediate resistance at $174.99.
A closer examination of Fibonacci retracement levels reveals potential zones of support and resistance. SOL is trading above the Fib level. If buying pressure increases, it could position toward the next Fib level at $156.42.
Furthermore, a decisive move above this level may pave the way for the 0.382 retracement at $174.99 and the 0.618 Fib level at $205.01, signaling a potential short-term recovery.
However, based on the current trend, if SOL’s price fails to hold its key support zone at the Fib level of $126.40, it could trigger further downside pressure, potentially testing lower support levels.
A breach here may signal a continuation of the bearish trend.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
