TLDR:
- Solana sustains the $120–$125 support band, signaling stronger buyer defense after an extended multi-month decline.
- RSI bullish divergence and improving momentum suggest the market may be forming an early bottoming structure.
- Analysts monitor a gradual climb toward $145–$160 as selling activity slows and price stabilizes above support.
- A drop below $120 remains the low-probability scenario unless broader market weakness triggers renewed downside.
Solana bottoming speculation is growing as the asset maintains stability above the closely watched $120–$125 support zone.
The recent performance shows the market protecting a key demand region while momentum indicators attempt to shift in favor of buyers. These developments come after months of downward pressure that pushed the asset toward levels last tested earlier in the year.
Solana bottoming discussions have intensified due to the narrowing price swings and steady defense of multi-month support. Market participants are now focused on whether this structure evolves into a sustained recovery or remains within a short-term consolidation pattern.
Support Zone Holds as Price Stabilizes
In a recent analysis shared by veteran financial trader Matthew Dixon, Solana’s price action shows clear signs of stabilization.
He noted that the asset completed a multi-month downtrend and is now stalling around the $125–$135 area, which previously served as an important support band. This defense of the zone has limited selling pressure and created room for buyers to regain positioning.
Dixon’s tweet also pointed out that the price has continued to hold above the broader $110–$120 demand region.
This behavior suggests that the market is not currently forming a bearish continuation pattern. A series of higher lows on the micro timeframe supports the view that accumulation is taking place as sellers gradually lose momentum.
The RSI (14) offers additional evidence, with a visible bullish divergence showing the indicator forming higher lows while the price sets lower lows.
Although the RSI has yet to move above the neutral 50 level, its steady rise from oversold conditions often aligns with early bottoming phases rather than mid-trend declines.
Momentum Turns Toward a Mild Upward Bias
Dixon outlined several potential paths for Solana, with the most likely scenario pointing to a gradual move toward the $145–$160 range.
This expectation is based on slowing selling activity and the supportive RSI structure. Traders are watching whether a retest of $135 transitions into a stronger push through the next resistance area at $145.
A secondary scenario involves the market holding within a consolidated band between $120 and $140.
This outcome may materialize if broader market conditions remain neutral. Such periods often reflect hesitation before a directional move, and Solana’s positioning within long-term support keeps both upward and sideways outcomes in consideration.
The least likely scenario remains a breakdown toward the $110 level. Dixon noted that this would require a decisive close below $120 accompanied by rising volume.
Broader Bitcoin weakness would likely be the primary catalyst for such a shift. Until that occurs, the current structure continues to support the view that Solana may be forming a bottom while momentum gradually returns.
The post Solana Bottoming? $120–$125 Support Holds as Momentum Returns appeared first on Blockonomi.
Source: https://blockonomi.com/solana-bottoming-120-125-support-holds-as-momentum-returns/
