Solana price began a strong upward move, breaking the $160 mark before facing resistance near $168. After reaching a high of $168.60, it corrected lower and broke below $162. Currently, Solana price is approaching the key $155 support, where buyers could step in to prevent a deeper drop.
Solana Price Pulls Back Below Key Levels
Solana price managed to climb above the $160 resistance level, signaling a temporary bullish momentum. The upward push took the price past $162, briefly entering a positive short-term zone. But a strong barrier emerged near $168, halting further gains.
The digital asset reached a high of $168.60 before starting a downward correction. It broke below the 50% Fibonacci retracement level of the $158 to $168 move. In addition, a key bullish trend line was broken near $162 on the hourly chart.
Now, Solana price trades under both the 100-hourly simple moving average and the 76.4% Fibonacci level. This downward move brings the $158 support zone back into focus. But the real test lies at $155, which may act as a solid floor.
Analyst Predicts Rally if SOL Closes Higher
According to analyst Ali Martinez on X, Solana price could surge if it closes above $170 by the week’s end. Martinez cites a classic cup-and-handle pattern on the weekly chart as a potential bullish signal. “A close above $170 may trigger a rally toward $2,700,” he posted.
Although the market is still very hesitant, Solana is still trading at 43% of its peak of 293. This gap means there is an avenue of improvement, particularly as market conditions are favorable. In addition, Solana is still ranked as the second-biggest layer-one blockchain with regard to total value locked (TVL).
Speculation around spot-based SOL ETFs is adding fuel to the optimism. Bloomberg analysts place a 95% approval probability on Solana ETFs. This outlook follows the U.S. SEC’s approval of Ethereum ETFs, strengthening the case for Solana.
Near-Term Technicals Suggest Caution But Not Panic
Solana’s price is trading near a critical point, with key indicators showing mixed signals. The MACD hourly is still negative, which can be considered downside pressure. At the same time, the RSI is moving below the 50 line, which testifies to declining momentum.
If the price gets tested once again and an effort is made to embark on a new recovery, the way will be blocked by values of $160 and $162. A break above $162 could push the Solana price to challenge the $168 barrier again. More than that, the stance above the level of $168 might trigger the way towards 178 and even 185.
If buyers fail to defend the $155 level, the Solana price may slide to $150. A low close below 150 would render the risk of a fall to 145. But a strengthening in the buying market may be experienced if support at 155 levels remains on the cards.
Summary
Solana’s price is facing pressure after hitting resistance at $168, and it is now approaching the $155 support level. Bearish technical indicators are evident, but reasonable fundamentals, such as the potential ETF approval and market standing, provide hope. The price of $155 is of interest to traders since they could send off a new rally should they manage to support it. Nevertheless, the inability to remain above it could result in additional losses of $150 or $145 within the next few days.
FAQs
Why did Solana price correct after hitting $168?
Solana faced strong resistance near $168 and failed to sustain gains, leading to a correction below key technical levels.
What is the next major support level for Solana price?
The next major support lies at $155, which could prevent deeper losses in the short term.
Can Solana reach $200 in the near future?
If Solana price breaks above $168 and maintains bullish momentum, a move toward $200 in August remains possible.
What is the current technical outlook for Solana?
Technical indicators show bearish momentum, but key support near $155 may offer a rebound opportunity for buyers.
How could ETF approval impact Solana price?
Approval of a spot-based SOL ETF could boost investor confidence and drive long-term gains for Solana price.
Glossary of Key Terms
Fibonacci Retracement – A method to identify potential support or resistance levels using horizontal lines.
MACD – Moving Average Convergence Divergence; an indicator used to identify trend direction and strength.
RSI – Relative Strength Index; a momentum indicator that shows if an asset is overbought or oversold.
TVL – Total Value Locked; the total capital held within a blockchain’s DeFi ecosystem.
Simple Moving Average (SMA) – A technical indicator that smoothens price data by averaging over a set period.
References:
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