TLDR
- Over the past week, SOL experienced a 12% decline after failing to clear the hurdle set at $145.
- Currently, Solana is holding steady between $117 and $125, a range historically seen as a buffer against steeper losses.
- Analysts are observing a bearish divergence on Solana's weekly RSI, pointing to a waning bullish influence.
- Two scenarios present themselves: an upswing from support to fresh peaks, or a downward break leading to ongoing losses.
- A symmetrical triangle pattern is emerging, potentially guiding near-term price direction.
Solana finds itself at a pivotal juncture following a steep 12% decline recently. The continuous pressure from sellers has dragged it below key support levels.
SOL's decline kicked off when it couldn't keep its feet above the $135 mark, a movement reflecting trends in major cryptocurrencies like Bitcoin and Ethereum during this time.
The price drop took SOL under the $125 mark, reaching as low as $122.64 before stabilizing. Bulls have attempted to drive the price up, but a tough resistance at $126 remains.
Technical Analysis
Current technical readings show Solana is below its 100-hour simple moving average, with a rising channel on the charts offering some structure around $124.
Clear resistance zones have surfaced amid this weak phase, with $126 as the first hurdle, followed by tougher barriers at $128 and $132 - the latter being a 50% Fibonacci retracement level.
After hitting an all-time high of nearly $295, Solana couldn't sustain this level, starting the current downturn.
Market experts have highlighted a bearish divergence on the weekly RSI, where price hits a new high but RSI forms a lower high, often an indicator of diminishing bullish energy.
The $117 support is key, combining horizontal support with the 1.618 Fibonacci extension, and has held firm for over a year, potentially deciding Solana’s medium-term direction.
RSI hovers at 40, a historical level where Solana has rebounded, marking the start of upward trends.
#Solana – Unbiased Analysis
Solana’s recent all-time high of $295 has failed to hold firm, pushing it into an ongoing corrective phase.
Significant bearish divergence on the weekly charts signals testing of a crucial horizontal support, steadfast for a year.
The 1.618… pic.twitter.com/X1QCVaF0Kn
— Mags (@thescalpingpro) March 31, 2025
Bearish sentiment increased as a major holder sold over $7.6 million worth of SOL, impacting market perceptions.
On the 4-hour chart, SOL price Solana is currently in a symmetrical triangle, where two converging trendlines map out the potential for either a bullish breakout or a bearish breakdown.
The MACD indicator hasn’t yet crossed above its zero signal line, adding weight to potential near-term declines.
A dip in the Chaikin Money Flow indicator to -0.01 points to rising selling pressure, potentially stalling Solana's recovery and confining its short-term movement between $116 and $125.
We're seeing two distinct paths: an optimistic one with a strong rebound from $117 backed by increasing momentum and volume... SOL …or a pessimistic trend with a break below $117, possibly leading to a plunge and touching new yearly low levels around $112.15.
If the bullish outlook prevails and Solana crosses above the upper trendline of its triangle pattern, it could target $155.24, with a substantial surge possibly pushing towards $180.90.
At present, Solana is in a state of flux, with investors keenly watching how it navigates these key technical levels ahead.
Maisie is a seasoned journalist in cryptocurrency and finance, contributing to outlets like Moneycheck, Blockonomi, Computing, and leading Blockfresh as Editor in Chief.
