Solana Price Drops 29% Amid Selling Pressure

Solana (SOL) has experienced significant selling pressure over the past few weeks, with its price dropping over 29% from its peak near $188 to just above the key support level of $130. The token's price movement has left investors speculating about its next direction, with charts indicating a delicate balance between a potential short-term rebound and a deeper decline.

The Relative Strength Index (RSI) is nearing oversold levels, and Heikin Ashi candles remain red, suggesting a strong downtrend. The price is currently attempting to hold above a critical Fibonacci support zone, which aligns with the 38.2% Fibonacci retracement from the last major rally. If this support level breaks decisively, the price could rapidly fall to the next cluster of support at $116 or even $102, which is the 61.8% Fib zone.

Historically, when the RSI reaches similar levels, Solana has shown a tendency to react, either pausing its fall or bouncing for a short-term rally. In early April, a similar RSI level led to a bounce of nearly +38% over 18 days. If history repeats, a potential rebound from $130 could push the SOL price back to $152–$160 in the short term, representing an approximate 20%–25% upside.

However, the major concern is the lack of bullish momentum and volume. The Heikin Ashi candles continue to close red with barely any upper wicks, indicating that buying pressure is nearly absent. If the $130–$128 zone gives out, there is very little structural support until $102, and a flash drop to $85 is not out of the question, especially if broader market sentiment weakens further.

In a downside scenario, from the current price of $133, a drop to $102 would represent a ~23% downside, and a drop to $85 would represent a ~36% downside. This kind of move would likely coincide with a full risk-off move in altcoins or broader market panic.

On the other hand, there is a bullish scenario for SOL price in the near term. If bulls manage to defend the $130 mark and push the price above $138–$140, that could trigger a short squeeze rally. The next immediate resistance would be around $152, followed by $165. For that to happen, the RSI must reverse above 40, and green Heikin Ashi candles with upper wicks would indicate that buyers are fighting back.

A possible bullish move from $133 to $165 would yield nearly +24%, giving swing traders an opportunity, provided a confirmation signal like a bullish engulfing or RSI divergence appears. Considering the current chart structure, the bias remains bearish until the SOL price breaks above the $140–$142 resistance zone with strength. RSI being oversold is a watch point, but without price action confirmation, caution is warranted.