Solana extended its recent slide Thursday, dropping below the $162 mark before attempting a modest recovery that faces significant resistance near $166. The cryptocurrency, which plunged to $145 after failing to hold above $175, now trades below its 100-hour simple moving average as traders watch whether the rebound can gain traction or fade into another downturn.
What to Know:
- Solana fell from above $175 to a low of $145, breaking through multiple support levels including $170 and $165 before starting a recovery attempt.
- The cryptocurrency broke above a bearish trend line at $155 but now faces immediate resistance at $165 and $166, with the 100-hour moving average acting as a barrier.
- Technical indicators show mixed signals, with the MACD losing momentum in bearish territory while the RSI holds above 50, suggesting neither bulls nor bears have control.
Price Movement and Recovery Dynamics
The decline mirrored broader weakness across major cryptocurrencies including Bitcoin and Ethereum. Solana's descent accelerated after it lost the $160 support level, with selling pressure intensifying until the price bottomed at $145.
The recovery wave that followed pushed Solana above the 23.6% Fibonacci retracement level of its drop from the $188 swing high to the $145 low. The cryptocurrency also cleared a bearish trend line that had provided resistance at $155 on the hourly chart.
Despite these technical victories, Solana remains trapped below the $165 mark and its 100-hour simple moving average.
The next major obstacle sits at $166, which corresponds to the 50% Fibonacci retracement level of the same downward move. A push above $172 would represent the main resistance zone that could open the door to further gains toward $180 and potentially $188.
Technical Outlook and Key Levels
If Solana fails to break through the $166 resistance, analysts expect renewed downward pressure. The first line of defense sits at $160, followed by major support at $155.
A breach of $155 would likely drive the price toward $148. Further weakness below that level could send Solana tumbling toward $142 in the near term, erasing most of the recovery gains.
The hourly MACD indicator shows diminishing momentum in bearish territory, suggesting the selling pressure may be easing but hasn't reversed. The Relative Strength Index stands above 50, indicating the market hasn't entered oversold conditions despite the recent decline. These technical tools help traders identify potential trend changes by measuring momentum and the strength of price movements relative to recent highs and lows.
Fibonacci retracement levels, derived from the mathematical Fibonacci sequence, mark areas where prices often pause or reverse during recoveries from significant moves. Traders use these levels alongside moving averages, which smooth out price data to identify the overall direction of a trend over a specific time period.
Closing Thoughts
Solana's recovery remains fragile as the cryptocurrency struggles to reclaim lost ground above key technical levels. The coming sessions will determine whether buyers can push through resistance near $166 or whether sellers will reassert control and drive prices back toward recent lows.