Market Overview for Solana/Tether (SOLUSDT): December 20, 2025

Summary
• SOLUSDT tested key support at $123.65 and bounced, forming a bullish engulfing pattern.
• Momentum shifted toward the close, with RSI suggesting overbought conditions.
• Volatility increased, with price widening beyond Bollinger Bands during key 5-hour window.

Solana/Tether (SOLUSDT) opened at $126.23 on 12/19 at 12:00 ET, reached a high of $127.87, a low of $123.65, and closed at $126.29 by 12:00 ET the next day. Total volume was 2,095,544.98 SOL, with a notional turnover of $270.59 million over 24 hours.

Structure & Formations

Price formed a bullish engulfing pattern near $123.65, confirming a short-term reversal after a sharp drop. A doji appeared at $126.69, signaling indecision. Support levels are forming at $125.07 and $123.65, while resistance appears at $126.64 and $126.92. A 61.8% Fibonacci retracement of the recent swing sits at $126.14, aligning with a key moving average.

Moving Averages

The 5-minute chart shows price closing above the 20- and 50-period moving averages, reinforcing short-term bullish momentum. On the daily chart, the 50-period MA is above the 100- and 200-period MAs, suggesting a positive intermediate-term bias.

Momentum Indicators

The MACD crossed into positive territory during the late session, aligning with higher volume. RSI climbed above 70 near the close, indicating potential overbought conditions. A divergence between price and RSI emerged in the early afternoon, suggesting caution ahead.

Volatility and Bollinger Bands

Volatility expanded during the 5-hour period from 19:00 to 24:00 ET, with price moving outside the upper Bollinger Band. This expansion suggests increased conviction in the bullish move. The narrowing of bands earlier in the day hinted at a possible breakout, which later materialized.

Volume and Turnover

Volume surged during the early morning hours (ET), with the largest 5-minute candle contributing $12.8 million in turnover. Despite a moderate close, volume remained above the 24-hour average, suggesting continued interest. Price and turnover aligned during key upward moves, reinforcing bullish conviction.

The market appears to be consolidating near $126.30, with Fibonacci levels and moving averages providing initial support and resistance. While the short-term trend is positive, a test of $126.64 could trigger further momentum. Investors should watch for a potential breakdown below $125.07 or a sustained move above $126.92 in the next 24 hours.