Solana Price Faces 17% Retracement Risk as Support Levels Tested

Solana's price has recently traded slightly above $150, with technical indicators suggesting a potential short-term retracement. The bullish momentum has pushed traders towards a critical support level of approximately $144-$146, where analysts caution that the bulls may face challenges. This sentiment is supported by the TD Sequential sell signal and an Elliott Wave confirmation.

According to Ali Martinez, Solana's price action has shown signs of weakening near the $152–$153 zone. The TD Sequential indicator flashed a 9 candle, typically considered a local top, coinciding with the Fibonacci 1.0 extension target near $152.68, a strong resistance level. Since then, Solana's price has declined to $149.50, with a possibility of testing the $146 area. Martinez pointed out that the next important support and the Fibonacci confluence are at $146. If bearish pressure persists, there may be a revisit to this level in the short term. The chart indicated that prior consolidation had occurred around this region, giving it heavy significance. If bulls fail to protect the SOL price around $146, Solana may revisit the $142 or $138 level. A close below the weekly low of $146 on the daily chart would likely change the bias to bearish.

Elliott Wave analysis by Man Of Bitcoin showed Solana price forming five clear waves from its June lows, confirming the start of a new bullish structure. However, the analyst identified $144.79 as micro support for the next wave (5) continuation. Wave-(3) peaked near $150, and wave-(4) retraced toward $130. The ongoing wave (5) move appears to have stalled between $150 and $153. This implies that a dip to $144–$146 may be part of a healthy correction within the broader uptrend. If this support zone holds, Solana price could aim for a breakout toward $156–$160. This area marks the next Fibonacci resistance cluster and psychological hurdle for bulls. Conversely, failure to bounce at $144.79 may see a reset toward the lower support band near $138.

Derivatives data reflected a bullish skew in Solana markets, though signs of cooling are emerging. Open interest jumped 6.83% to $7.07 billion, while options open interest surged 21.63% to $3.18 million, showing rising participation and risk-taking by traders. However, options volume fell 59.41%, suggesting reduced directional conviction. The long/short ratio remained positive at 1.0691, and top traders on Binance are positioned long at a ratio of 2.0331. These data confirmed a bullish trend, yet elevated long positioning can expose the market to sharp liquidations during sudden price drops. Funding rates also remained mostly flat, showing neutral sentiment in perpetual futures. This indicated that although longs dominate, they are not paying excessive premiums, suggesting the market is not yet overheated. Short liquidations dominated across all timeframes, implying short-sellers were squeezed recently. But if Solana price dips below $148, the liquidation flow may reverse.

Solana's 24-hour trading volume fell 30% to $1.98 billion, signaling reduced momentum. This volume drop, combined with the TD Sequential top and Elliott micro support, reinforced the $144–$146 retracement possibility. Despite the bearish Solana price predictions, the top altcoin has rallied over 17% in the past week, surging from around $129 to $151.6, showing strong upward momentum. However, bulls must maintain control above $146. Any failure here may lead to a drop toward $138 or even $131.11, the 2.236 Fibonacci extension.