Solana (SOL) is undergoing a crucial test of a major support zone between $77 and $87, with technical indicators suggesting the prolonged sell-off may be losing steam. After failing to settle above the $90 resistance level, SOL trimmed gains and is currently consolidating above $85. The price had previously started a recovery wave above $82, breaking a key bearish trend line with resistance at $85.50 on the hourly chart.
Despite this recovery attempt, bearish pressure remains evident near $88.80. This level coincides with the 61.8% Fibonacci retracement of the downward move from the $94.10 swing high to the $80.29 low. Analysts highlight that SOL is now trading approximately 77% below its all-time high, having posted five consecutive negative months. The weekly Relative Strength Index (RSI) has fallen to its lowest level since the 2022 bear market, indicating heavily stretched conditions.
However, several momentum signals are beginning to shift, hinting at potential exhaustion in the downtrend. Funding rates in futures markets have stayed negative for 21 consecutive weeks, reflecting persistent bearish sentiment. Yet, the daily Moving Average Convergence Divergence (MACD) has formed a bullish cross, and key exponential moving averages are starting to flatten. Furthermore, the price has moved far from its Bollinger Band mean, a typical sign of extension following intense selling.
The immediate technical picture shows SOL trading above $85 and the 100-hourly simple moving average. Key resistance levels are at $87.20, $88.80, and the pivotal $90 zone. A successful close above $90 could pave the way for a move toward $95 and potentially $102. Conversely, failure to break above $88.80 could lead to another decline, with initial support at $84.50, followed by major levels at $82.50 and the critical $80 zone. A break below $80 might see the price target the $74 area.
Analysts are closely watching whether SOL can reclaim the recently broken support range. If the $77–$87 zone holds, it could establish a base for a potential recovery, with higher targets eyed at $143, $205, and $251.
