Solana's native token shows signs of recovery after testing support at $115,How high can Litecoin go? but faces critical resistance levels that could determine its next major move.
■ Current market dynamics show SOL struggling to maintain momentum above $155
■ The 100-period moving average on 4-hour charts acts as dynamic resistance
■ A developing trendline at $146 offers immediate support for bulls
■ Sustained trading below $160 could trigger another downward spiral
Critical Juncture for Solana's Market Position
Following a significant correction from recent highs, Solana's token found temporary footing near psychological support at $115. The subsequent rebound saw SOL reclaim several important technical levels, including the 23.6% Fibonacci retracement marker drawn from its recent peak-to-trough movement.
The recovery attempt gained additional credibility when price action briefly surpassed both the $155 zone and the 100-period simple moving average on 4-hour timeframes. However, market participants appear cautious near the 50% retracement level, creating a supply zone around $160 that's proving difficult to overcome.
Technical Landscape Reveals Mixed Signals
Current chart patterns show Solana trading beneath both the $160 resistance and its 100-period moving average. The presence of a developing trendline at $146 offers some hope for bulls, potentially serving as a springboard for another upward attempt.
Immediate resistance clusters appear at $155 and $160, with a decisive break above these levels potentially opening the path toward $170. Beyond this psychological barrier, the $188 region emerges as the next significant technical target for optimistic traders.
Potential Downside Scenarios
Failure to conquer the $160 resistance could reignite bearish momentum. Initial support rests at the trendline near $146, followed by more substantial footing at $132. A breach below this level might test the recent swing low at $115, with extended weakness potentially targeting the triple-digit psychological support at $100.
Technical indicators present a cautious picture, with the Moving Average Convergence Divergence showing increasing bearish momentum in the 4-hour timeframe. The Relative Strength Index currently hovers below the neutral 50 level, suggesting sellers maintain some degree of control in the near term.
Key support levels to monitor include $146 and $132, while resistance clusters form at $155, $160, and $170. Market participants should watch these technical levels closely for potential breakout or breakdown opportunities in coming sessions.
