Solana is showing early signs of resilience and may soon reclaim the $200 level if bulls defend the $195โ$197 support zone. However, a daily close below $195 could extend the correction toward $185 before any rebound attempt. Momentum remains neutral, and traders are awaiting a clear breakout confirmation.
Key Points
- RSI neutral at 44, MACD bearish but momentum flattening.
- $195โ$197 acts as confluence zone of Fibonacci and POC support.
- Volume decline hints at market indecision ahead of breakout confirmation.
Solana Tests Key Support Near $196 After Breaking $200
Solana (SOL) recently slipped under the critical $200 psychological barrier and is now consolidating near $196. This level coincides with the 0.618 Fibonacci retracement from Septemberโs swing low and the POC from recent sessions, forming a dense liquidity zone where buyers are actively defending.
| Indicator | Current Level | Implication |
|---|---|---|
| RSI (Daily) | 44 | Neutral to mildly bearish |
| MACD (4H) | Negative crossover | Weakening short-term momentum |
| Volume Trend | Fading | Indicates indecision |
| Support Range | $195โ$197 | Buyer defense zone |
| Resistance Range | $205โ$210 | Breakout trigger level |
This aligns with earlier RSI readings, suggesting that Solanaโs structure remains intact despite near-term weakness.
Falling Wedge Pattern Holds, Awaiting Breakout Confirmation
Solana continues to trade inside a falling wedge pattern, often seen before bullish reversals. Dynamic support is holding around $193โ$195, while descending resistance caps the upside near $205โ$208.
A confirmed breakout, with a 4-hour close above $205 and an uptick in volume, could trigger a move toward $220โ$230. Failure to defend $195 would shift focus to the next major liquidity zone at $185, aligning with the 0.786 Fibonacci level.
At this stage, Solanaโs structure remains neutral, with traders waiting for volume confirmation to define direction.
Momentum Cools, But Macro Trend Intact
Despite the recent pullback, Solanaโs long-term uptrend remains structurally strong.
Network data confirms sustained user activity and transaction throughput, while derivatives funding rates have normalized after the Q3 speculative spike.
This correction from $210 to $196 resembles a healthy market reset, not a breakdown. Flat open interest and lower leverage support the idea that the market is coiling for its next move, echoing the wedge pattern setup mentioned earlier.
Whatโs Next for Solana?
Solanaโs $196 zone represents a pivotal battle between bulls and bears. A reclaim of $205โ$210 would confirm a bullish reversal toward $220โ$230, while a close below $195 could invite a controlled drop to $185 before accumulation resumes.
For now, bias remains neutral as traders monitor daily closes and volume surges to confirm Solanaโs next 10% directional move.