Solana (SOL) is currently trading at $85.86, attempting to stabilize after a prolonged period of selling pressure. The market sentiment has shifted from aggressive selling to a phase of consolidation, as traders wait to see if a verified bottom has formed.
In our previous analysis, we stated that “until the price can close a daily candle back above the $120.30 resistance zone, the outlook remains bearish.” Since then, the price respected this outlook, consolidating near the lows but successfully defending the $80.00 psychological support level, avoiding further capitulation for the time being.
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Technical Breakdown
While the overall trend remains bearish, the selling momentum has decelerated, resulting in sideways price action. The asset remains below all key moving averages, indicating that bulls have significant work to do to reverse the trend.
- EMA 20 (Red): Currently sitting at $98.78, this short-term line is the immediate dynamic resistance. The price is beginning to range closer to this line, suggesting a potential test of this level could be imminent.
- EMA 50 & 100 (Yellow/Black): The EMA 50 ($118.06) and EMA 100 ($136.87) continue to slope aggressively downward. Their divergence from the current price highlights the severity of the medium-term downtrend.
- EMA 200 (Blue): The long-term “Bull/Bear” line is far above at $151.65, confirming that the macro environment for Solana remains firmly in bearish territory.
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The Bullish Path
For a recovery to gain traction, Solana must first reclaim the EMA 20 ($98.78). A successful breakout above this dynamic resistance would open the door for a rally toward the $120.30 resistance zone (Red Box). Only a sustained close above $120.30 would signal a significant structural shift and a potential end to the current correction.
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The Bearish Path
The bears are still in control of the broader trend. The critical level to watch is the recent low around $80.00. If this support floor gives way, the consolidation will fail, likely triggering a fresh wave of selling pressure targeting lower liquidity zones, potentially toward the $65.00 region.
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Weekly Verdict
Solana is in a fragile consolidation phase; while selling has paused, the trend remains bearish until the price can reclaim the $98.00 – $120.00 range.
