Solana has experienced a notable decline from recent highs, with SOL/USD breaking below a double top neckline around the $165 level as it seeks to establish support above Fibonacci retracement zones.
The chart reveals that Solana peaked near the $180 area before entering a corrective phase that has brought prices down to test multiple Fibonacci support levels. The recent breakdown from what appears to be a reversal pattern has accelerated the decline, with SOL now trading below the 38.2% Fibonacci retracement at $159.13 and testing the psychological $150 support zone.
Currently positioned at $151.10, Solana is hovering precariously above a line in the sand for the near-term outlook. The cryptocurrency has shown some resilience in holding above this key support area, though the proximity to this level suggests that buyers need to step in decisively to prevent further downside pressure.
The double top breakdown that occurred earlier has followed a textbook pattern, with the formation’s lower boundary acting as the catalyst for the steeper decline. However, the fact that SOL has managed to find some stability above the $141.55 level indicates that this support zone may be attracting buying interest from longer-term investors.
Bearish Technical Momentum
The moving average structure clearly illustrates the shift in sentiment, with Solana trading well below its key moving averages that have now rolled over to provide dynamic resistance. The 100 SMA and 200 SMA appear to be converging around the $160-$165 area, creating a formidable resistance zone that would need to be reclaimed for any meaningful recovery attempt.
The MACD histogram has been deeply negative throughout the recent decline, reflecting the intensity of the selling pressure that has gripped SOL. However, recent readings suggest that the momentum oscillator may be beginning to show early signs of stabilization, though a clear bullish divergence or crossover would be needed to signal a potential trend change.
The stochastic oscillator has been fluctuating between oversold and neutral territory, currently showing signs of attempting to climb higher from deeply oversold levels. This could suggest that short-term selling pressure may be beginning to wane, though confirmation through sustained price gains would be necessary to validate any momentum shift.
Key Solana Levels
The immediate focus for Solana remains on whether it can successfully defend the $141.55 Fibonacci support level and build a foundation for recovery. A sustained move above the 38.2% retracement at $159.13 would be the first sign of bullish momentum returning, potentially opening the door for a test of the 50% Fibonacci level at $164.55 near the former neckline.
However, any recovery attempts are likely to face significant headwinds from the broken triangle support turned resistance and the convergence of moving averages in the $160-$170 zone. The 61.8% Fibonacci retracement at $169.98 would represent a more ambitious target that would require substantial buying conviction to achieve.
