Solana is currently testing a significant resistance level at $178, raising concerns about future price movement. A failure to break through could lead to a decline towards $105.89.
Resistance at $178
Solana is trading below the $178 resistance level, which corresponds to the value area high and a key high time frame supply zone. Following the establishment of a local swing high, price action has formed lower highs and lower lows — a bearish pattern indicating weakness. If the rejection holds, the next significant areas of interest will be around $105.89.
Potential Reversal at $105.89
At the $105.89 level, a structural double bottom could develop if this area is tested and held. A dip to this zone followed by a strong buyer response may indicate a potential trend reversal.
Future Price Action Forecast
As long as Solana trades below $178, the probability of further downside remains elevated. A move towards $105.89 seems likely, and if this level holds, it could form a double bottom and lead to a rotation back toward resistance. However, failure to defend this support would confirm a breakdown and risk shifting the larger trend bearish.
The testing of $178 is a critical moment for Solana. Future price movements will depend on the ability to defend the $105.89 level, which could signal a trend reversal.
