Solana has demonstrated notable resilience by staging a recovery from the $130 support zone, with the cryptocurrency currently trading at $147.10 after forming what appears to be a complex inverted head and shoulders pattern.
The test of the neckline resistance close to the key $150 psychological barrier potentially marks the end of the recent downtrend that saw Solana decline from highs above $180. This recovery attempt could allow SOL to prove its ability to reclaim higher ground and challenge the moving average resistance levels that have been capping upside momentum.
Recent price action reveals a series of lower highs and lower lows that characterized the bearish phase, but the current bounce from $130 support could represent a potential shift in market structure if sustained.
This support zone has proven to be a significant area of interest for buyers, coinciding with previous resistance levels that have now been converted to support. The ability of Solana to hold above $150 and begin building higher lows would be essential for validating a trend reversal and attracting additional buying interest from momentum traders.
Moving Average Resistance
The moving average structure presents both challenges and clear targets for Solana’s recovery prospects. Both the 100-period and 200-period simple moving averages are positioned well above the current price action, with the 100 SMA around $155 and the 200 SMA near $165, creating a defined roadmap for the bulls.
The death cross formation, where the 100 SMA crossed below the 200 SMA during the recent decline, remains a headwind for the recovery. However, if Solana can sustain its current bounce and push back above both moving averages, it would represent a significant technical achievement and could trigger momentum buying from algorithmic systems.
The gap between the moving averages has been widening during the downtrend, but a successful reclaim of these levels could begin to compress this gap and eventually lead to a bullish crossover.
Solana Momentum Indicators
The technical oscillators are beginning to display encouraging characteristics following Solana’s bounce from support. The stochastic indicator has turned higher from deeply oversold territory, suggesting that selling pressure may be exhausting and buyers are starting to regain control. This oversold bounce setup often provides the foundation for more sustained rallies, particularly when it occurs from well-established support levels like the $130 area.
The MACD indicator, while still in bearish territory with the MACD line below the signal line, shows signs that the bearish momentum may be slowing. The histogram has begun to compress from its recent lows, indicating that the rate of decline is decreasing and momentum may be shifting.
If the current recovery can gain traction, the next upside targets include a test of the $155-$160 resistance zone, followed by a potential challenge of the 200 SMA around $165. A successful break above $165 would likely trigger significant momentum buying and could propel Solana toward the $175-$180 area, representing a complete reversal of the recent correction.
