Solana price at a crossroads: rebound opportunity or further decline? Latest technical analysis

Current Situation Overview

Solana (SOL) is currently trading around $133.91, down -5.89% in the past 24 hours, with a circulating market cap of $75.74B. This level is significant for SOL—it’s neither a safe zone nor a despair zone, but a middle ground that requires cautious observation.

The key question is: Is SOL accumulating strength for a rebound, or is this just a brief respite during a decline? After weeks of decline, Solana has repeatedly found buying support in the 118–120 USD range, which warrants in-depth analysis.

Key Technical Insights

Price compression, but direction remains uncertain

Looking at the recent 4-hour chart, SOL’s price volatility is gradually narrowing, forming a typical wedge compression pattern. While this suggests weakening downside momentum, don’t be fooled—sellers still hold the situation.

More importantly, every time the price hits the 118–120 USD support zone, buyers step in to defend. This doesn’t confirm a trend reversal, but it indicates that the selling pressure is waning—a necessary condition for a rebound.

Indicators show positive signals, but not yet confirmed

On the daily and 4-hour charts, the RSI indicator shows bullish divergence—price makes new lows, but momentum indicators are rising. Additionally, the daily chart shows a double bottom pattern in the making, all hinting at a possible bottom formation.

But the keywords are “possible” and “in the making”—this is not a buy signal yet, just an early indication that a bottom may be near.

Key Price Levels Traders Should Watch

Support Levels (Lower Defense Lines):

• Major support: 118–120 USD (repeatedly defended)
• If broken: next target 105–100 USD

Resistance Levels (Upper Ceiling):

• Near-term resistance: 132–136 USD
• Major resistance: 145–158 USD
• Critical level: 160 USD

Core logic: As long as SOL remains below 145–160 USD, sellers hold the advantage. Any upward move into this zone warrants close attention—whether it’s a genuine breakout or a false move.

When Can We Expect a Clear Rebound?

If you’re waiting for clearer buy signals, SOL needs to meet these conditions:

1. Break above and stabilize above the downtrend line (currently still under pressure)
2. Price can hold above 132 USD with increased trading volume
3. RSI remains above the midline of 50

Without these confirmations, the so-called “rebound” might just be a false correction during a downtrend, with lower lows ahead. In other words, you could fall into a trap of buying the high, getting caught, and being forced to cut losses.

Current Risk Assessment

Reasons to be optimistic about a rebound:

• Support levels are repeatedly defended, indicating buying interest below
• Momentum indicators show positive divergence
• Compression pattern suggests an imminent directional move

Risks:

• The overall trend has not yet reversed
• Major resistance zone (145–160 USD) is still distant
• A break below 118 USD support targets 100 USD

Trading Recommendations

This is not a “strong buy” zone but a reaction zone that needs validation. Suggested actions:

• Avoid blindly chasing longs: wait for clearer breakout signals
• Monitor support levels: if 118–120 USD is convincingly broken, short opportunities may emerge
• If going long: wait for SOL to break above 132 USD and stabilize before increasing positions
• Risk management: set stop-loss 5–10 points below 118 USD

Let the price speak through action, not hope, in your trading.

Frequently Asked Questions

Q: Is SOL currently in an uptrend or downtrend?

A: The macro trend remains downward. Current signs only suggest a short-term rebound possibility, but a true trend reversal requires more confirmation—such as holding above 160 USD.

Q: Is now a good time to buy Solana?

A: This is an observation zone rather than a “buy recommendation.” If you want to participate in a rebound, wait for clearer breakout signals rather than entering full positions at this ambiguous level.

Q: What price could Solana reach in the future?

A: If positive factors like growth and ecosystem expansion play out, SOL could trade in the 180–250 USD range by 2026; however, if the market deteriorates, revisiting 120 USD is also possible. Currently, the price is between these two scenarios.