A brutal shakeout or setup for Solana? | Credit: Hameem Sarwar
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Key Takeaways
Solana has dropped below the $180 support level, signaling a rise in bearish pressure.
If SOL fails to hold above $175, it could slide toward $160, extending its decline.
However, defending the 0.5 Fib level at $175.68 may trigger a short-term bounce.
The $180 level was supposed to be Solana’s (SOL) safety net, until it wasn’t.
After a sharp pullback, Solana’s price is testing the lower support levels, and sentiment is shifting fast.
Bulls may frame it as a cool-off before liftoff. However, bears appear to view it as the first crack for an extended downtrend.
Either way, volatility’s back, and Solana’s next move could set the tone for November.
Is SOL up for an extended decline? Let’s check the charts.
Solana Extends Selloff
On the 4-hour chart, the Relative Strength Index (RSI) shows that the altcoin is plunging toward the oversold region at 31.00.
A deeper slide toward 20 could confirm intensified selling pressure, suggesting that nears remain in control of short-term price action.
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Amid this move, the cryptocurrency is trapped in a descending channel, while holding the support at $175.81
However, the resistance at $193.94 may prevent SOL from trading higher.
Looking closely, the Money Flow Index (MFI) prints at 16.84, validating the ongoing bearish sentiment.
This deep reading highlights heavy capital outflows and fading buying interest, conditions often seen before a temporary relief bounce.
If bearish momentum persists, SOL’s price could retest the next central support zone around $170 and $168, where buyers previously attempted to stabilize prices.
A breakdown below this range might open the way toward $160, extending the current correction phase.
SOL Price: Bearish Momentum Strengthens
The daily chart indicates that SOL’s price remains trapped in a descending channel, suggesting that the coin may face further downside in the coming days.
Sellers continue to dominate, as the Moving Average Convergence Divergence (MACD) also signals a similar setup.
At press time, the indicator prints in the negative zone, confirming a trend reversal as bears take over. Moreover, the 26 EMA (orange) crossing above the 12 EMA (blue) further strengthens the bearish outlook.
SOL’s Awesome Oscillator reinforces this sentiment, as histogram bars have flipped below the zero line, confirming weak market momentum.
The consistent appearance of red bars and the indicator’s deep reading at -14.78 reflects growing seller strength with no clear signs of recovery yet.
Drawing from Fibonacci retracement levels, we can deduce what SOL’s next move might be. The altcoin continues to print red candles, and every attempt to defend its support zone has failed.
At press time, SOL’s price is $175.68, near the 0.50 Fib level. A break below this point could push the price toward the 0.382 Fib level at $156.15
However, if bulls step in to defend the 0.5 Fib level, a short-term rebound could lift the price toward $193.60, potentially invalidating the prevailing bearish momentum.
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.
