Solana has been on a steady climb throughout April and early May, carving out a sustained uptrend that recently peaked at $185.
After reaching this local high, SOL appears to be entering a corrective phase, currently trading at $175.04 as bulls and bears battle for control at crucial technical levels. SOL has established a well-defined ascending trend line since early April, with price action bouncing cleanly off the support zone on dips.
Solana Correction Zones
The Fibonacci retracement tool applied to this latest upswing reveals critical support zones that could determine Solana’s next directional move. The 38.2% retracement level sits at $168.66, providing the first significant support.
Should selling pressure intensify, the 50% Fibonacci level at $163.46 offers additional cushioning, while the 61.8% golden ratio level at $158.27 could prove decisive in maintaining the bullish structure. Currently, Solana is trading between these Fibonacci levels and the recent high, suggesting that market participants are reassessing the next move.
Price action is also approaching the confluence of the trend line and the 38.2% Fibonacci level, creating a high-probability support zone around $168-$170. This convergence of technical factors creates a formidable support zone that could attract more bullish interest.
Solana Trend Indicators
The positioning of the moving averages reinforces Solana’s underlying bullish bias. The 100 SMA (blue line) is positioned above the 200 SMA (red line), confirming that the path of least resistance remains to the upside. Both moving averages are sloping upward, with the 100 SMA providing dynamic support around the $155 level and the 200 SMA following at approximately $145.
Examining the momentum indicators, the MACD (middle panel) shows positive momentum with the histogram still in positive territory, though diminishing in height. The signal lines remain above the zero line, indicating that despite the recent pullback, the overall momentum remains bullish.
The stochastic oscillator (bottom panel) has declined from the overbought region, suggesting that the short-term buying pressure is easing. However, it’s worth noting that during strong uptrends, the stochastic often makes multiple forays into overbought territory before any significant reversal occurs. The oscillator appears to be finding support around the midline (50 level), which could precede another move higher if buyers step in at current levels.
Solana’s recent price action should be viewed within the context of its impressive performance since early 2025. The cryptocurrency has outpaced many competitors, partly due to its growing ecosystem of DeFi applications and NFT marketplaces. This fundamental strength has translated into technical resilience, with dips being consistently bought.
Traders should monitor the $168.66 support closely for signs of buying interest. A bounce from this zone would maintain the bullish structure and potentially set up another test of the recent highs. Conversely, a decisive break below the 61.8% Fibonacci level at $158.27 would signal a deeper correction, potentially targeting the 100% Fibonacci level at $141.45, which coincides with a previous resistance zone.
