- Solana (SOL) experiences a 40% crash from $193 to $115, followed by a 40% recovery to $163.
- Technical indicators suggest growing downside risk, with key support at $133.
- SOL price faces potential drop to $115 if $133 support fails, or possible rally to $180 if bullish momentum returns.
Solana (SOL) finds itself at a critical juncture as the broader cryptocurrency market grapples with bearish sentiment and underwhelming performance in Bitcoin and Ethereum ETFs.
The altcoin’s recent price action has been nothing short of a rollercoaster, experiencing a dramatic 40% plunge from its peak of $193 to a low of $115, only to stage an equally impressive 40% recovery to $163 within a mere three days.
This V-shaped recovery initially rekindled bullish hopes, propelling SOL above both the 50 and 200 Exponential Moving Averages (EMAs) on the 4-hour chart. However, the euphoria proved short-lived as selling pressure intensified, pushing the price back below the psychologically important $150 mark.
Can Solana sustain the current level?
The Fibonacci retracement levels offer insight into this reversal, with the 61.80% level acting as a formidable resistance point and triggering a retreat below the 38.20% Fibonacci level.
Technical indicators paint a complex picture of SOL’s current state. The Relative Strength Index (RSI) on the 4-hour timeframe has paused just short of oversold territory, suggesting potential for further downside before reaching extreme levels.
Meanwhile, the EMAs have realigned in a bearish formation, with the 50 and 200 EMAs now serving as overhead resistance, further complicating SOL’s path to recovery.
The crucial 23.60% Fibonacci level at $133 emerges as a pivotal point for Solana’s near-term trajectory. A decisive breach below this threshold could pave the way for a retest of the recent $115 low, potentially ushering in a new wave of bearish sentiment.
Conversely, a successful defense of this level could provide the springboard for a bullish reversal, with $150 and even $180 becoming realistic targets in the weeks ahead.
