Solana (SOL) Stabilizes After Sell-Off With $150 Recovery Scenario

Solana is once again at a decisive point as price action tightens around a key support area. Recent market activity suggests that traders are watching this zone closely, with mixed signals coming from higher-timeframe charts and shorter-term momentum indicators. While some market voices point to a possible upside move, the broader structure still calls for caution.

Solana Holds Key Support as Buyers Step In

Butterfly pointed out that SOL is probing the bottom of an ascending triangle on the two-week chart. The triangle has been forming for a very long time, and this move is very significant.

Source: X

The prices have managed to stay above the lower trend line so far, and the response has been positive. The buyers are coming in very aggressively at this point, and they are preventing any further downside.

Analyst RAO shared a similar view, saying Solana hits resistance and support levels exactly. After being rejected from a resistance area, SOL fell to a strong demand area and is currently stabilizing. 

RAO points out that the $128 to $125 area is a high-quality spot to accumulate. As long as this area holds, the probability of a bounce remains high.

A clean move from this level could push the price towards the $150 region very quickly, as long as support is maintained through constant buying. This region is the point beyond which the price will see a larger fall. If we notice a strong sign of a reversal with strong candles, it would indicate that buyers are taking control once again.

Source: X

Broader Trend Still Faces Heavy Resistance

Despite that, buyers showed up at the support levels, TradingView data indicates that Solana is still under pressure in the higher time frames. 

On the two-day chart, SOL is trading at around $127 after a strong decline, and it is still below all the major exponential moving averages. The 20, 50, 100, and 200 EMAs are bearish between $136 and $162.

Bollinger Bands indicate price squeezing around the lower band, which indicates that selling pressure has eased but not reversed. This squeezing may lead to a temporary bounce, but lackluster bullish volume makes it difficult to determine the extent of the upside.

Source: Tradingview

The middle band, between $131 and $133, has become an important short-term level. If price fails to recover this region, threats of further downside action remain.

The momentum indicators are a reflection of a cautious approach. RSI has bounced from oversold levels but remains below 50, which is a typical indication of being cautious about the downtrend. MACD is improving, with the bearish momentum weakening, but it remains below zero, which is a reflection that any upside is still weak.

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