The Solana ecosystem faces significant support and resistance levels. Current market structure forms uncertainty with key patterns on the chart.
Solana Approaching Fibonacci Levels
The price of Solana recently broke below the 0.618 Fibonacci retracement at $168.78, but showed signs of a minor rebound. If selling pressure persists, the next critical support sits near the 0.786 retracement level at $146.89.
Additionally, Fibonacci extension levels suggest potential lower targets. The 1.272 extension aligns with $101.74, while the 1.618 level points to $78.33. In an extreme case, the 2.0 extension projects a possible drop to $58.69. A horizontal black support line further reinforces the potential breakdown area.
Besides Fibonacci levels, the current price structure forms an ascending wedge pattern. Historically, such formations indicate a breakout or breakdown scenario. If Solana fails to hold above $146.89, traders may anticipate further losses. However, a sustained rebound above $168.78 could signal a bullish shift.
Market Sentiment and Trendline Support
Analysis by expert Jelle shows Solana's price retesting a crucial support zone while maintaining its diagonal trendline. Higher highs and higher lows indicate a bullish market structure. Technical indicators, such as moving averages and the parabolic SAR, suggest an ongoing uptrend.
The moving average aligns with the ascending trendline, strengthening support levels. Parabolic SAR dots remained below the price during the uptrend, but recent pullbacks caused shifts above it. Despite this, the trendline remains intact.
However, price fluctuations near a horizontal resistance zone create uncertainty. A breakout above this level could push Solana into price discovery. Conversely, another rejection may lead to extended consolidation.
Concluding Thoughts
In this scenario, Solana stands at a challenging position where key Fibonacci levels play a critical role. The ascending wedge and other market patterns indicate potential shifts, both upward and downward. External factors like selling pressure and current trends will significantly affect SOL's short-term outlook.
As the situation unfolds, traders should closely monitor Solana's key levels and trends. The uptrend remains intact; however, the forthcoming weeks could be decisive in reaffirming SOL's price trajectory.
