- SOL bounces off Fibonacci retracement, suggesting a potential trend shift
- Bollinger Bands tightening could hint at an upcoming breakout
- Key resistance at $160-$170 needs to be cleared for a sustained uptrend
Solana has been on a bumpy ride, with a deep correction that sent prices tumbling from $295 down to $125. After hitting that low, SOL managed to stage a sharp recovery, bouncing back above $140 and showing signs of renewed momentum. But is this just a relief rally, or are we witnessing the start of a larger trend reversal?
A key indicator suggesting bullish potential is the Fibonacci retracement level. SOL recently bounced off the 0.618 retracement, which often acts as a major support zone during corrections. This level has historically been a spot where long-term investors start accumulating, and with buyers stepping in, the possibility of a continued push higher is increasing.
Bollinger Bands Indicate Volatility Ahead
A closer look at the Bollinger Bands shows an interesting pattern—they’re starting to squeeze, signaling a drop in volatility. This typically happens before a major price move, but the direction remains uncertain.
If SOL breaks above $160, it could trigger a strong bullish run, potentially taking it toward $180-$200 in the short term. On the flip side, if price action stalls and drops below $140, it might retest $125, which could indicate that the rally was only temporary.
Traders should watch for a decisive move outside the Bollinger Bands, as that could confirm the next significant trend for Solana.
Solana Finds Support—Can the Bulls Keep It Going?
For SOL to maintain its upward trajectory, it needs to clear the $160-$170 resistance zone, an area that has previously acted as a barrier during upward moves. If buyers push through, it could signal the start of a larger bullish trend, with $200 as a realistic target.
However, if Solana struggles and starts losing momentum, there’s a risk of dropping back toward $125-$130, which would put bulls on the defensive once again.
Solana, launched in 2020 by Anatoly Yakovenko, is known for its high-speed transactions and low fees, making it a key player in DeFi and NFTs. With continued developer activity and institutional interest, SOL remains one of the most-watched cryptocurrencies in the market.
Right now, traders are waiting to see whether this bounce is the start of something bigger or just a temporary spike. If key resistance levels get broken, we could see Solana making another run toward its previous highs.
