Solana has been showing signs of recovery after experiencing a significant decline from its recent highs near the $150 level. Price action has formed a notable bottoming pattern around the $95.54 support zone, which appears to be serving as a crucial foundation for the current upward movement.
The chart displays what appears to be a corrective phase within a broader downtrend. After forming a descending trend line, price is moving closer to testing the resistance once more to gauge if bearish traction is about to pick up.,
The overall structure suggests that the recent downtrend may have been a pullback within a larger bullish cycle, with price now potentially resuming its upward trajectory after finding solid support.
Key Solana Levels to Watch
The Fibonacci retracement levels drawn on the chart provide important resistance zones that traders should monitor. The price has recently surpassed the 36.20% Fibonacci level at $106.67 and is currently testing the 50.00% retracement level around $110.33. Further resistance lies at the 61.80% Fibonacci at $113.81, with the 100% retracement level positioned at $125.11, which represents the previous swing high.
SOL/USD is currently trading at approximately $112.01, having formed a series of higher lows after bouncing from the $95.54 support. This price action suggests growing bullish momentum as buyers appear to be regaining control of the market.
SOLUSD Technical Analysis
The blue and red moving averages on the chart had previously formed a bearish crossover during the decline, but are now showing signs of potential convergence as price recovers. The distance between these moving averages appears to be narrowing, which could signal an upcoming bullish crossover if the current momentum continues.
The Stochastic oscillator in the upper indicator panel shows a strong upward movement, currently approaching overbought territory. While this suggests strong bullish momentum, traders should be cautious as the indicator nears the upper boundary, which could signal a potential short-term pullback or consolidation.
The MACD indicator in the lower panel has formed a bullish crossover, with the blue line crossing above the orange signal line while both turn upward. The green histogram bars are expanding, confirming increasing bullish momentum. This MACD configuration supports the case for continued upward movement in the near term.
Solana Price Outlook
The immediate resistance for SOL/USD lies at the 61.80% Fibonacci retracement level ($113.81). A decisive close above this level could accelerate the upward movement toward the 100% Fibonacci level at $125.11, potentially completing the recovery phase of this cycle.
Conversely, if sellers regain control, initial support can be found at the 36.20% Fibonacci level ($106.67), followed by the stronger support around $95.54, which represents the recent swing low.
From a longer-term perspective, Solana’s price action seems to be forming a larger bullish structure despite the recent correction. The strong bounce from support levels and the break above the descending channel suggest that bulls remain in control of the broader trend.
However, traders should remain vigilant of broader cryptocurrency market developments and potential correlation with Bitcoin’s movements, as significant shifts in BTC could influence Solana’s price trajectory regardless of its individual technical setup.
The current technical structure for SOL/USD remains cautiously bullish as long as price maintains above the recently established support levels, particularly the $106.67 mark.
