Solana (SOL/USD) appears to be consolidating within a well-defined descending triangle on its 4-hour chart, with price recently attempting but failing to break above the upper resistance boundary.
The subsequent rejection has investors watching key support levels that could determine SOL’s next directional move.
Critical Support And Resistance Levels
Currently trading at $146.57, Solana is navigating between two significant technical levels. The upper boundary of the descending triangle, which connects the highs from late April through early May, has consistently served as resistance, most recently rejecting price near the $149.50 area. This rejection has sent SOL back toward the middle of its trading range.
The key support level to watch is the horizontal floor at $143.56, which has acted as a pivot point multiple times in recent weeks. This level has proven its significance by halting several downside moves and serving as a launchpad for rebounds.
The interplay between the descending upper triangle line and this horizontal support has created a converging range that suggests a decisive move may be approaching.
For a bullish scenario to materialize, Solana would need to break and close above the descending channel’s upper boundary, which would target a move toward the $152-154 range based on the previous swing high.
On the downside, a break below the $143.56 support could trigger a move toward the lower boundary of the descending channel, potentially testing the $140 psychological level. This area would be crucial, as a break below could signal a deeper correction phase.
Mixed Solana Technical Signals
The moving average configuration presents a bearish bias, with the 100 SMA (blue line) below the 200 SMA (red line), indicating that the path of least resistance remains to the downside. Price has recently crossed above the blue 100 SMA but remains below the red 200 SMA, suggesting improving short-term momentum but persistent longer-term bearish pressure.
The stochastic oscillator is approaching overbought territory but hasn’t yet reached extreme levels, indicating room for additional upside if buyers can maintain control. The oscillator’s trajectory shows strengthening bullish momentum, though traders should watch for potential divergence or a turn from overbought conditions that could signal a reversal.
Meanwhile, the MACD indicator in the middle panel displays a recent bullish crossover with the blue line crossing above the orange signal line. The histogram has shifted from red to green bars, suggesting building positive momentum. This alignment of indicators provides modest support for continued upside in the near term, despite the rejection at the channel’s upper boundary.
Solana’s recent price action resembles a consolidation phase where the asset is attempting to build a base for a potential trend reversal. The series of higher lows since May 5th provides some encouragement for bulls, though the failed breakout attempt on May 7th suggests strong selling pressure remains at higher levels. Cryptocurrency regulation and market sentiment resulting from global trade updates and the crucial FOMC decision could influence Solana direction from here.
