Solana (SOL) is currently trading near a significant technical support zone identified between $131 and $126. Analysts regard this area, often referred to as the ‘Golden Pocket,’ as crucial for determining near-term price direction. A sustained hold at these levels could potentially attract buyers and trigger a short-term price recovery.
Current technical indicators, however, largely point towards a bearish trend. Analysts note the formation of lower highs on price charts and highlight persistently weak momentum signals. Specifically, lagging indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) reinforce the view of ongoing downward pressure, with a notable absence of bullish reversal patterns or divergence.
The market faces two distinct potential outcomes. A decisive breakdown below the $126 support level could open the path for further declines, with $117 emerging as a possible next target. Conversely, if buying interest materializes and SOL successfully bounces from the $131-$126 zone, a short-term relief rally could develop. Monitoring trading volume trends and price action within this critical range is advised to gauge market sentiment shifts.
Given the persistent selling pressure and lack of bullish technical confirmation, analysts are urging caution. They emphasize the importance of strict risk management strategies for traders due to the heightened uncertainty surrounding SOL’s near-term trajectory.