In the ever-dynamic world of cryptocurrency, the performance of coins like Solana (SOL) is closely monitored by traders and investors alike. Last week, I examined the shifting sands of SOL/USD (Solana against the US Dollar), putting forward the possibility of a short-term rebound amid an overarching bearish trend. The initial inclination derived from a confluence of market patterns and key support levels, particularly the daily support standing at around US$163.90. This price level appeared crucial for discerning the potential movements of SOL/USD, given its historical context and psychological significance.
Upon rigorous scrutiny of the market charts, it became evident that even though a pronounced downside trend was apparent, the presence of lows near US$174.30 could offer sufficient liquidity to ignite a brief recovery. Traders often look for sell stops positioned just beneath established lows, presenting an opportunity for a surge. The accompanying technical analysis revealed a completed inverted head and shoulders formation within the one-hour time frame, signaling a plausible upward trajectory targeting the pattern’s price objective near US$179.90. This configuration undeniably presented a compelling case for a tactical long entry.
As the week drew to a close, the anticipated trade unfolded as planned, with the expected upward movement materializing. However, shortly thereafter, bearish sentiments resurfaced, reclaiming dominance as SOL/USD dipped back below critical levels. Observing the trend since the onset of 2025, the downward trajectory has become increasingly evident, leading to speculation that a breach of the existing daily support may soon be realized.
Looking ahead, the market presents a potential battleground between buyers and sellers around the US$147.27 to US$158.53 range. This area of interest is notable, as it was previously a point of buyer accumulation back in November 2024. The question arises: can this level withstand renewed selling pressure? Given the historical context, this support zone may be susceptible to breakdowns.
Should the price maneuver below the US$147 level, the horizon appears bleak, with limited forthcoming support seen only within the range of US$117.04 to US$120.26. Such a decline would suggest a profound shift in market sentiment, culminating in an intensified bearish phase. The cautionary stance is further emphasized by the validation to monitor the H1 resistance at US$172.93 closely; this could reveal potential sell-on-rally opportunities at the market’s onset.
My current perspective on SOL/USD leans towards a bearish outlook, shaped by recent movements and persistent resistance levels. Traders should remain vigilant, analyzing the market intricacies while being prepared for significant fluctuations as SOL/USD navigates through these challenging waters. The landscape is ever-changing, and staying updated with market patterns is pivotal for any trader looking to capitalize on opportunities that arise in this volatile environment.