Solana (SOL) is showing signs of continued weakness after failing to maintain momentum above the $132 level. The price has slipped below several key support zones, raising concerns among traders about the potential for further downside as broader market sentiment remains cautious.
Price Action Overview
SOL fell beneath the $130 and $128 support levels after its recent rejection near $132. This move closely followed the wider market downturn, with both Bitcoin and Ethereum also experiencing renewed selling pressure.
Bearish momentum accelerated once Solana dropped below $126, pushing the price down to a local low around $121. A modest rebound followed, with SOL testing the 23.6% Fibonacci retracement of the decline from $134 to $121. Despite this bounce, the asset continues to trade below the 100-hour simple moving average, reinforcing the bearish outlook.
On the hourly SOL/USD chart, a clear downward trend line has formed, with resistance near $131. Short-term resistance is seen around $125, while a stronger barrier sits near $128, aligning with the 50% Fibonacci retracement level.
Why This Matters
From a technical perspective, Solana faces significant overhead resistance. A decisive move above $130, followed by a strong close above $132, could shift momentum and open the door for a recovery toward the $140–$145 range.
On the downside, immediate support lies near $122, with a critical level at $120. If sellers push the price below $120, SOL could slide toward $112, and potentially as low as $105 if bearish pressure intensifies.
Momentum indicators continue to favor the bears. The MACD is strengthening in negative territory, while the Relative Strength Index (RSI) remains below the 50 mark, suggesting limited buying strength for now.
As Solana hovers near crucial support, traders are closely watching whether $120 can hold or if the broader market weakness will trigger another leg lower.
