Solana has recently experienced a notable price correction after reaching local highs near the $121 level. The cryptocurrency appears to be forming a potential reversal pattern, with price action suggesting that sellers may be gaining control following an extended uptrend.
The most recent price action shows Solana has pulled back from its peak and is currently trading around the $114.94 level, indicating sellers have stepped in after the recent rally. This rejection from higher levels may signal a temporary exhaustion of buying pressure.
Key Solana Levels to Watch
The Fibonacci retracement tool applied to the recent swing high-low reveals significant price levels where buyers and sellers may congregate:
- The 38.2% Fibonacci retracement level sits at approximately $113.43, which is currently being tested as immediate support.
- The 50.0% Fibonacci level at $111.05 represents the mid-point retracement and could act as a stronger support if current levels fail.
- The 61.8% Fibonacci level near $108.68 could be the final defensive line for bulls before a deeper correction may occur.
Notable resistance levels include:
- The recent high at $121.12 (0.0% Fibonacci level)
- The psychological $120.00 level
Key support levels to watch:
- The 38.2% Fibonacci level at $113.43 (current vicinity)
- The 50% retracement at $111.05
- The 61.8% Fibonacci level at $108.68
- The psychological $110.00 level
- The 100% retracement at $100.99, which would indicate a complete reversal of the recent upward move
The price has already retraced beyond the 38.2% level, suggesting that bears have some momentum currently. A bounce from the current level would indicate that buyers are still present, while a breakdown below would likely target the 50% retracement next.
SOLUSD Technical Analysis
The chart shows the 100-period Moving Average (blue line) and 200-period Moving Average (not explicitly indicated but likely the black trend line) on the chart. The 100 MA is still positioned above the 200 MA, suggesting the longer-term uptrend remains intact despite recent weakness.
However, the converging nature of these moving averages suggests diminishing bullish momentum, with a potential bearish crossover on the horizon if selling pressure continues. The price recently broke below the 100 MA, which often signals a shift in intermediate-term momentum from bullish to bearish.
The Stochastic oscillator (14,3,3) displayed at the bottom of the chart shows the indicator approaching overbought territory and potentially forming a bearish divergence. While the price made a lower high, the stochastic attempted to make a higher high, suggesting underlying weakness in the bullish momentum.
The MACD (12,26,close) indicator is showing signs of bearish momentum developing, with the MACD line potentially crossing below the signal line. This would further confirm the shift in momentum to the downside if it materializes.
Solana Price Outlook
If Solana manages to hold above the 38.2% Fibonacci level and regain momentum, we could see a retest of the recent highs near $121.12. A decisive break above this level could open the path toward the $130.00 psychological resistance.
However, if selling pressure intensifies and price breaks below the 50% retracement level, the downside move could accelerate toward the 61.8% Fibonacci at $108.68, with further weakness potentially targeting the $100.99 level (100% retracement).
Traders should watch for reversal candlestick patterns at current Fibonacci levels which might indicate a resumption of the previous trend. Conversely, strong bearish candles breaking below support would suggest further downside ahead.
From a risk management perspective, bulls might consider protective stops below the 61.8% Fibonacci level, while bears could look for entries on rallies that fail at the 38.2% level or the $120 psychological resistance.
Given the current market structure and indicator readings, the likelihood of continued consolidation with a bearish bias appears to be the most probable scenario in the near term, though the longer-term uptrend still remains technically intact for now.
For now, crypto markets seem to have a bullish reaction to the latest global trade developments, as a relief rally occurred after Trump announced a 90-day delay in tariffs on major trade partners, except China.
