Solana (SOL/USD) continues to face intense selling pressure as the cryptocurrency trades at $146.04, trapped within a well-defined descending channel pattern that has been guiding price action lower over the past several weeks.
The altcoin is currently testing the lower boundary of this bearish channel, highlighted by the blue support zone, while struggling to mount any meaningful recovery against the prevailing downtrend.
The chart reveals a complex technical structure with multiple trend lines converging around current price levels. The primary descending channel is defined by parallel black trend lines that have been containing SOL’s price action since late May.
Additionally, a dashed trend line provides an intermediate resistance level, creating a multi-layered bearish framework that has proven difficult for bulls to overcome.
Bearish Momentum Rising
Moving average analysis reinforces the bearish Solana sentiment, with both the red and blue moving averages positioned well above the current price level and trending downward.
The red shorter-term moving average is acting as immediate resistance around $165, while the longer-term blue average sits higher near $170. This bearish moving average configuration suggests that any relief rallies will face significant overhead resistance, making sustained upward momentum challenging to achieve.
The widening gap between price and the moving averages indicates that Solana has lost considerable bullish momentum and would require a substantial catalyst to reverse the current downtrend and reclaim these key dynamic resistance levels.
Mixed Oscillator Signals
The MACD histogram in the middle panel presents a nuanced picture, with recent bars showing signs of potential stabilization near the zero line. While the MACD remains in negative territory, the convergence of the signal lines suggests that the intense selling pressure seen in previous weeks may be moderating. This development could indicate that bears are losing some momentum, though a confirmed bullish crossover has yet to materialize.
The stochastic oscillator in the lower panel offers more encouraging signals for potential bulls, with the indicator showing signs of turning higher from deeply oversold conditions. The oscillator has bounced from the lower boundary and appears to be forming a base around the 20-30 level, suggesting that selling pressure may be exhausting at current price levels.
However, the stochastic has considerable room to move higher before reaching overbought territory, indicating that any potential relief rally could have significant scope to develop if the technical setup proves favorable.
From a pattern perspective, Solana’s position within the descending channel places critical importance on the current support zone around $145-$150. A decisive break below this blue-highlighted area could trigger additional selling toward the lower channel boundary around $135-$140, where longer-term buyers might emerge.
Conversely, a strong bounce from current support levels that breaks above the dashed trend line resistance could target the moving averages around $165-$170. Such a move would represent the first meaningful challenge to the bearish channel structure and could attract momentum traders looking for oversold bounces.
