Solana (SOLUSD) appears to be showing early signs of recovery after a prolonged downtrend that began in early January 2025. The cryptocurrency, currently trading at $134.90, is attempting to break above a descending trendline that has capped price action since February.
A bit of a bullish divergence can also be seen as price made lower lows on March 10 and April 7 while stochastic had higher lows then, suggesting a disconnect between selling pressure and price action. A break above the complex double bottom neckline could confirm that buyers are taking advantage.
Key Solana Levels to Watch
The primary structure visible on the chart is the descending trendline that connects the lower highs since February 2025, which has been a significant resistance barrier for Solana. Price has recently challenged this trendline, suggesting potential bullish momentum is building.
Looking at historical price action, several key levels emerge as important areas of support and resistance. The $120 level has served as a significant support zone in recent weeks, with multiple bounces occurring around this price point. A break below this level could trigger further declines toward the $100 psychological level.
On the upside, immediate resistance appears around the $140-145 area, which aligns with recent reaction points. Beyond this, the $160 level stands out as a major resistance zone, coinciding with the 200-day moving average (red line) and representing a nearly 20% move from current prices.
The longer-term picture shows that Solana has retraced significantly from its January peak near $260, losing more than 50% of its value. This deep correction could present a value opportunity if the current bottoming pattern continues to develop.
SOLUSD Technical Indicators Analysis
The moving averages paint a decidedly bearish longer-term picture, with the blue 100 SMA crossing below the red 200 SMA in March, forming a death cross pattern. This typically signals sustained bearish momentum. However, price has been trading far below both moving averages, suggesting the market may be oversold on a longer timeframe.
The stochastic oscillator in the lower panel shows a bullish development, with the blue and orange lines rising sharply from oversold territory and now approaching the overbought region above the 80 level. This indicates strengthening bullish momentum in the short term and supports the case for continued upside.
The MACD indicator (middle panel) shows signs of a potential bullish crossover, with the blue line appearing to curve upward toward the orange signal line. The histogram bars are also turning green and expanding, suggesting building bullish momentum. If this crossover materializes, it could confirm the short-term bullish outlook.
Solana Price Outlook
Solana appears to be at a critical juncture, attempting to reverse its multi-month downtrend. The current technical setup suggests a cautiously bullish outlook for the near term, with several supporting factors:
If Solana can decisively break above the descending trendline and establish support above $140, we could see a more substantial recovery toward the $160 level where the 200-day MA provides resistance. A breakthrough of this level could potentially trigger a more significant rally toward the $180-200 zone.
However, traders should remain cautious as the longer-term trend remains bearish, indicated by the death cross formation and the price trading well below major moving averages. A rejection at the trendline and drop below the recent support at $120 would invalidate the bullish outlook and potentially lead to tests of lower support levels.
The cryptocurrency market’s overall sentiment and macro factors like interest rates and regulatory developments will also influence Solana price trajectory beyond these technical factors. Given the substantial correction already experienced, risk-reward may favor limited positions in anticipation of a technical bounce, with close attention to the identified key levels.
