Solana Struggles in Downtrend: Key Levels Needed for a Reversal
Solana continues to show signs of weakening momentum as its price action remains firmly below key technical thresholds. Market structure now favors sellers, and without a decisive shift in momentum, SOL risks extending its decline toward recent lows.
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SOL Trades Below Key Moving Average and Fibonacci Level
At $127.40, Solana currently sits below its 7-day Simple Moving Average (SMA) at $134.76, a level that has repeatedly acted as dynamic resistance.
Source: coinmarketcap
In addition, SOL remains under the 38.2% Fibonacci retracement level at $137.27, measured from the swing high of $148.22 to the recent low of $119.57.
Trading under both indicators signals that:
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Buyers lack momentum
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Sellers maintain structural control
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The path of least resistance remains downward
Until SOL reclaims these barriers, bullish attempts are likely to face strong rejection.
Momentum Indicators Show Weakness, Not Exhaustion
The RSI-14 near 42 reflects weakening momentum but remains above oversold territory. This suggests sellers still have room to push prices lower before buyers are likely to step in.
The absence of oversold conditions means the current bearish cycle may continue unless new catalysts emerge.
Key Levels to Watch: $137 on the Upside, $119 on the Downside
Solana’s chart now sits at a pivotal point with two crucial levels defining its near-term fate:
1. Reversal Trigger: Break Above $137
A daily close above the 38.2% Fibonacci level ($137) would indicate that buyers are regaining control.
Such a move could:
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Shift short-term sentiment
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Trigger momentum-based buying
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Open the door for a push toward the 50% Fib retracement and beyond
Until this level is reclaimed, any bounce remains corrective, not bullish.
2. Breakdown Risk: Fall Below $119.58
A break below the swing low at $119.58 may accelerate selling pressure.
This would confirm continuation of the broader downtrend and could lead to:
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Retests of deeper support levels
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Increased panic selling
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Momentum traders flipping fully bearish
A loss of $119 would likely invite algorithmic sell programs into the market.
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Solana Price Outlook: Bears Remain in Control
Solana remains trapped in a bearish structure, with price action below key trend and Fibonacci levels. Momentum indicators show further downside is possible, and bulls must reclaim at least $137 to argue for a short-term reversal.
Until then, traders should expect continued volatility and the potential for a retest of $119, especially if broader market sentiment weakens.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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