After a 31% correction in November, Solana is testing a crucial support level that could turn this consolidation phase into a bullish opportunity. Buyers are actively defending the $145 zone, forming a technical pattern that traders are closely watching. The market is torn between capitulation and a rebound: what will be the next move for SOL?
The crypto market is experiencing a period of intense turbulence. Bitcoin dropped to as low as $98,000 before bouncing back toward $102,000, while total liquidations exceeded $2 billion over the past two days. This brutal volatility hasn’t spared major altcoins, and Solana is among the hardest hit with a decline of 4% in 24 hours and a monthly correction of 31%.
Despite this selling pressure, SOL’s current technical structure reveals a particularly interesting setup for traders who follow chart analysis. The token is actively defending a crucial support, and volumes are beginning to show signs of stabilization. The question now is: Is Solana forming a bottom before a bullish reversal?
Analysis of Solana’s daily chart reveals the formation of a falling wedge, a chart pattern known for signaling the exhaustion of sellers. This pattern is characterized by converging trendlines, with higher lows and decreasing highs, progressively compressing the price.
The recent correction has brought SOL back to the lower boundary of this wedge near $145.81, a level that has proven its solidity as a support zone. From this low, the token has bounced to $157.70, confirming that buyers remain active and aggressively defending this area. This price behavior suggests accumulation is underway, despite the overall bearish market sentiment.
Trading volumes also show an interesting pattern: they’re gradually decreasing as the wedge forms, typical behavior that often precedes a bullish breakout. If history repeats itself, Solana could experience significant volatility expansion in the coming days, with a directional bias that will depend on the support’s ability to hold.
Maintaining above the falling wedge support remains the essential condition for validating the bullish scenario. If SOL manages to consolidate above $145, traders can anticipate a movement toward the upper resistance line of the pattern, currently located around $165-170.
However, the 3-day chart reveals that SOL has broken its FBB median band in HTF. This is not an encouraging signal for what’s ahead, unless SOL moves back above $175 and maintains position above it.
Conversely, losing support at $145.81 would completely invalidate this bullish setup. In this bearish scenario, Solana could quickly revisit the $135-140 zones, or even test lower levels if panic sets in. Traders should therefore carefully monitor price behavior around this support, particularly the volumes and buyers’ reaction during tests of this zone.
On the two-week timeframe, the massive Order Block has rejected the price, which could push it toward its critical support at $109. If this $109 level gives way, SOL could face dark days ahead and potentially drop to $50 to $30 in the coming years.
Beyond pure technical analysis, several macroeconomic factors directly influence Solana’s potential. The recent $2 billion in liquidations has cleared much of the market’s excessive leverage, potentially creating healthier conditions for a rebound. When over-leveraged positions are massively liquidated, this reduces future selling pressure and can facilitate a reversal.
Bitcoin’s behavior also remains decisive for altcoins like Solana. As long as BTC maintains above $100,000, altcoins retain room to perform independently. However, a new drop in Bitcoin toward $95,000 or lower would likely drag SOL in its wake, toward that $109 level.
Nevertheless, Solana’s on-chain metrics show sustained network activity, with transaction volumes and dApp adoption that remain among the highest in the crypto ecosystem. This fundamental resilience provides a solid foundation for a potential technical rebound.
Take advantage of these market uncertainties by continuing to generate returns using Pionex’s free trading bots. They automatically buy dips and sell rallies using cutting-edge algorithms.
Sign up on Pionex and launch your bots in minutes:
Related topics:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
