Home / Analysis / Crypto / Technical Analysis / Solana (SOL) Maintains Support Above $183 — Bearish Trend Continues

Solana (SOL) Maintains Support Above $183 — Bearish Trend Continues

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • SOL holds above $183, previously serving as support in December
  • Still in a descending channel, suggesting the downtrend is intact
  • Rejection is likely to happen next, but the depth of the retracement awaited

Solana’s (SOL) price has recently exhibited dynamic activity across multiple time frames, providing compelling insights into its next potential moves.

The daily and hourly charts highlight significant support was met, previously established in December.

Despite the stabilization, we haven’t seen any significant signs of a reversal, which doesn’t mean it won’t come. 

SOL Price Analysis

The daily chart shows SOL in the middle of a descending channel that has persisted since the recent local top near $264.

Following a rejection at $223 (slightly below 0.236 Fib), SOL retraced to $176.47 (0.618 Fibonacci retracement) on Jan 13.

This level aligns with the channel’s lower boundary, forming a critical support zone.

The price quickly increased above $183, previously seen at the Wave W ending point, suggesting that support exists in this area.

Despite the level holding, we haven’t seen any decisive upward movement, implying that SOL is still in a downtrend. 

SOL price analysis
SOLUSD in a descending channel | Credit: Nikola Lazic/Tradingview 

The daily Relative Strength Index (RSI) momentum indicates a neutral stance, with no clear overbought or oversold signals.

The larger wave structure suggests the completion of Wave W and X and the ongoing development of Wave Y within a W-X-Y corrective pattern. Wave X has broken above the channel, but this fakeout led to its current downturn. 

Key horizontal resistance at $193.20 (0.5 Fibonacci retracement) poses a significant hurdle for buyers. Failure to reclaim this level could lead to continuing the downward trajectory, with deeper support at $152.65 (0.786 Fibonacci retracement).

The confluence of Fibonacci levels and the descending channel suggests indecision in SOL’s larger trend. A decisive break above $193.20 could confirm the beginning of a new bullish impulse, while failure to hold above $173.42 signals further downside.

SOL Price Prediction

On the lower time frame, SOL appears to have completed a local Wave (i) within a developing five-wave structure.

The bounce from $173.42 (0.618 Fibonacci retracement of the prior impulse) suggests a potential upward movement targeting $193 (0.5 Fib).

A sustained move above $193 is required to confirm the initiation of Wave (iii). If Wave (iii) unfolds as expected, the price could target higher Fibonacci extensions, with $223.88 (0.236 extensions of the entire corrective structure) and $230.64 as notable targets.

SOL price prediction
SOLUSD rejection likely | Credit: Nikola Lazic/Tradingview 

But first, a minor pullback for its Wave (ii) would be anticipated, whose depth will validate or invalidate this bullish projection. 

On the bearish side, rejection at $193.20 could lead to a retest of $176.47. A break below this level invalidates the bullish scenario and confirms the continuation of the corrective structure, with targets near $152.65 (0.786 Fibonacci level) and potentially as low as $136.63.

Key Levels to Watch

  • Immediate Resistance: $193.20 (0.382 Fibonacci retracement).
  • Secondary Resistance: $209.93 (0.382 Fibonacci extension).
  • Major Resistance: $223.88 (0.236 Fibonacci extension).
  • Immediate Support: $176.47 (0.618 Fibonacci retracement).
  • Critical Support: $173.42 (channel support).
  • Deeper Support: $152.65 (0.786 Fibonacci retracement), $136.63 (Wave Y extension).
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.
Was this Article helpful? Yes No

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
See more