Solana has staged an impressive recovery from its March lows, with the cryptocurrency currently trading at $183.34 after breaking above a key Fibonacci retracement level. This price action has sparked speculation about whether SOL has finally completed its corrective phase and is poised to resume its longer-term upward trajectory.
Looking at the daily chart, Solana has recently broken out of a descending trend line that had contained price action since January 2025. This channel breakout is a significant technical development, suggesting a potential trend reversal from bearish to bullish. The cryptocurrency has also successfully surpassed the 38.2% Fibonacci retracement level at $170.43, which has now transformed into a support zone.
Next Fibonacci Levels
The Fibonacci retracement tool, drawn from the high of $292.28 (100%) to the low of $95.11 (0%), highlights several critical levels that could influence future price action.
Having broken above the 38.2% level, Solana is now targeting the 50% retracement at $193.70, which coincides with a zone of historical price congestion from January. This confluence of technical factors makes this level particularly significant as resistance.
Should bulls maintain control and push above $193.70, the next major barrier would be the $200 major psychological level then the 61.8% Fibonacci level at $216.96. This area represents a critical threshold that could determine whether the recent advance is merely a corrective bounce or the beginning of a more sustainable uptrend.
A decisive break above this area of interest highlighted in the blue rectangle on the chart would significantly strengthen the bullish case and potentially open the path toward the previous swing high near $292.28.
The breakout from the descending trend line is particularly noteworthy as it suggests exhaustion of selling pressure that had dominated the market since January. The resistance could now flip to support and provide a backstop around the $160 level should any pullback occur.
Solana Technical Outlook
The technical indicator landscape provides additional context for Solana’s recent strength. The 100 SMA (blue line) is currently flattening after a period of decline, while the 200 SMA (red line) remains in an uptrend, suggesting that the longer-term bullish structure remains intact despite the recent correction. Solana’s price is climbing above both moving averages, which typically signals strong bullish momentum.
The stochastic oscillator has recently entered the overbought territory, with readings approaching the upper limits of its range. This suggests that the current rally may be nearing exhaustion in the short term, potentially leading to a consolidation phase or minor pullback before the next leg up.
The MACD indicator shows strengthening bullish momentum, with the blue line crossing above the orange signal line and the histogram bars expanding in positive territory. This crossover, occurring after an extended period of bearishness, typically signals a shift in momentum that could support further upside.
However, caution is warranted as the stochastic indicator suggests potential near-term exhaustion. Traders might consider implementing a scaled approach to profit-taking at key Fibonacci levels while maintaining a core position for the possibility of a full retracement to previous highs.
