Solana (SOL) has encountered a significant rejection at the $180 resistance level, showing a brief deviation above this price before quickly falling back. This suggests that the cryptocurrency could face a further pullback, with the $125 support zone now in focus as the next major level to watch.
Recent price action revealed that Solana’s price briefly surpassed the $180 level but failed to maintain momentum, quickly closing back below it. This reversal suggests that sellers are actively defending the $180 resistance, leading to a likely retracement toward lower support zones.
Key Technical Insights
Resistance Rejection: Solana briefly closed above $180 before falling back below, confirming rejection at this level. This suggests that bullish momentum is struggling to overcome this resistance, which remains a firm ceiling.
Support at $125: The $125 support zone is a critical technical level, as it represents a key support point on the longer-term chart. A correction towards this level could offer a buying opportunity for traders anticipating a rebound.
200-Day Moving Average: The 200-day moving average is also a crucial support level. A drop below this moving average would signal a potential shift in market sentiment, increasing the chances of further downside momentum toward the $125 support zone.
The current price action is a textbook example of a deviation, where the price briefly breaks above resistance only to be immediately reversed by selling pressure. This signals that the bulls are struggling to push past $180, and the likelihood of a pullback toward the $125 support zone increases.
What’s Next for Solana?
For now, Solana remains under pressure at the $180 resistance level. If it fails to reclaim this level and loses the 200-day moving average as support, a move toward $125 is likely. This could present a strong buying opportunity for those looking to enter a position at a potential support level, aiming for a rebound back toward $231.
On the other hand, if Solana manages to break above $180 decisively with high volume, it would invalidate the bearish scenario and restore bullish momentum. Traders should closely monitor volume trends and the 200-day moving average for confirmation of the next price movement.
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