Solana's Price Drops 4.07% Amid Bearish Pressure

Solana (SOL) is currently experiencing short-term bearish pressure, with its price dropping 4.07% to $117.79 from a recent high near $124. Technical analysis of the 15-minute chart reveals a clear rising wedge breakdown, indicating exhaustion after a strong upward move. The price is now consolidating between key zones, with support at $116.00 – $116.50 and resistance at $120.50 – $122.00. This support zone has held after the breakdown, acting as a potential base for buyers, while the resistance zone was formed after multiple failed retests. If SOL reclaims this resistance, it could resume its uptrend.

Indicators such as the Average Directional Index (ADR) and Moving Average Convergence Divergence (MACD) provide further insights. The ADR (14) is currently at 0.54, down from recent highs, indicating reduced volatility and suggesting that the price is coiling for its next move. The MACD (12, 26) shows early signs of bullish divergence, with the MACD line approaching a crossover above the signal line and the histogram turning slightly green. This divergence could signal a potential reversal in the short-term bearish trend.

The short-term structure of SOL shows a retracement within a broader bullish trend. If SOL holds above $116 and reclaims $120, a rally toward $125–$130 is possible. However, if it fails to hold above $116, a dip to $114–$111 could occur. A deeper support level at $113.80 is also noted, which could act as a potential base if the price breaks below $116.

Fundamentally, Solana remains strong with growing adoption in decentralized finance (DeFi), non-fungible tokens (NFTs), and payments. Recent network upgrades have stabilized performance, and its low-cost, high-speed infrastructure continues to be favored among developers and institutions. Despite the short-term price fluctuations, the underlying fundamentals of Solana suggest a positive outlook for the cryptocurrency.

SOL is at a decision point, with indicators suggesting waning sell pressure. However, the price must be confirmed with volume to validate the direction. A clean breakout above $122 could set up the next bullish leg, while a breakdown below $116 could invite further correction. Traders should watch for a MACD confirmation and volume surge to validate the direction of the next price move. The outlook for SOL remains bullish, but short-term volatility and key support/resistance levels must be closely monitored.