Solana has been experiencing a corrective phase after reaching highs near the $256 level in late 2024. The cryptocurrency is currently testing a significant support zone around $120, which aligns with a previous resistance-turned-support area that has historical significance dating back to mid-2022.
The price is currently hovering around the $120.44 mark, having experienced a substantial decline from the recent peak. This pullback represents an important juncture for SOL traders, as the cryptocurrency attempts to find stability at the key support zone highlighted on the chart.
The highlighted horizontal support band between approximately $100-$120 has previously acted as both resistance and support. In early 2022, this zone initially served as resistance before price broke down. More recently, in mid-2024, this same zone provided a foundation for the rally that took SOL to the $256 area.
Key SOLUSD Technical Levels to Watch
SOL finds itself at a critical technical juncture, with several key levels demanding close attention:
- Current Support: $120 area, reinforced by the 200 MA and historical significance
- Major Support: $100 psychological level
- Critical Floor: $19.63, marking the absolute bottom from previous cycles
- Resistance Turned Support: The entire band between $100-$120
- Overhead Resistance: $200, $256 (recent peak)
Should the current support fail to hold, traders should watch for a potential decline toward the $100 psychological level. Conversely, any recovery would need to first challenge the declining 100 MA before approaching the $200 level.
Solana Technical Analysis
The 100 and 200-period moving averages provide significant insights into SOL’s longer-term momentum. The 100 MA is currently positioned above the 200 MA, indicating that the longer-term uptrend structure remains intact despite the recent downward pressure. However, the price is now testing the 200 MA, which is curving upward around the $120 zone.
This interaction with the 200 MA is critical – holding above this dynamic support could signal continued bullish sentiment in the medium to long term. A decisive break below the 200 MA, however, might suggest a deeper correction or potentially a longer-term trend reversal.
The stochastic oscillator (14,3,3) shows SOL approaching oversold territory, with both K and D lines pointing downward. This indicates strong selling momentum in the near term, but also suggests the potential for a technical bounce as the indicator nears extreme oversold levels.
The MACD (12,26,close) presents a bearish picture, with the MACD line below the signal line and the histogram in negative territory. The recent crossover of these lines confirmed the bearish sentiment that accompanied the recent price decline. The widening gap between these lines suggests acceleration in the bearish momentum.
Solana Price Outlook
The long-term structure for SOL remains constructive as long as price maintains above the 200 MA and the $100 support level. The current pullback could be viewed as a correction within a broader uptrend that began in 2023, similar to patterns seen in other major cryptocurrencies.
For bullish continuation to be confirmed, SOL would need to form a higher low above previous significant support levels, followed by a break above recent swing highs. Watch for potential divergences in the stochastic and MACD that might signal weakening downside momentum before any meaningful reversal.
