Solana (SOL) faces a critical technical test as a massive bearish divergence emerges on its weekly chart, threatening the altcoin’s recent price gains. After reaching an impressive all-time high of $295 just three months ago, SOL’s price structure shows concerning signals that demand immediate attention from traders and investors.
Technical Analysis Reveals Critical Support Levels
Market expert Mags has identified a significant bearish divergence pattern on SOL’s weekly timeframe, coinciding with multiple technical indicators reaching crucial levels. The analysis highlights two key support zones that could determine Solana’s next major move:
- Primary support at the 1.618 Fibonacci level ($117)
- Secondary support at the horizontal structure ($105)
The Relative Strength Index (RSI) has declined to 40, a level that has historically served as strong support for SOL. This technical setup suggests increased volatility ahead as the market decides between bearish and bullish scenarios.
Potential Price Scenarios
Two distinct scenarios have emerged from the current technical setup:
Bearish Case:
- Initial bounce followed by sustained decline
- Breakdown below horizontal support
- Potential test of $105 support level
Bullish Case:
- Strong bounce from current levels
- Break above recent resistance
- Potential new all-time highs at $297, $338, and $385
Adding further context to the analysis, recent institutional developments in the Solana ecosystem could provide fundamental support for price action.
SOL/BTC Pair Analysis
The SOL/BTC trading pair is testing critical Fibonacci support at 0.618, following rejection from a descending trendline. This correlation with Bitcoin adds another layer of complexity to Solana’s price action.
Expert Price Targets
Crypto analyst Rose Premium Signals has identified key price targets:
- Accumulation zone: $120-$130
- Critical support: $105
- Bullish targets: $297, $338, $385
Frequently Asked Questions
What is causing Solana’s bearish divergence?
The bearish divergence has emerged from declining momentum indicators while price maintained highs, suggesting potential weakness in the current trend.
What are the key support levels to watch?
Traders should monitor the $117 Fibonacci support and $105 horizontal support levels as crucial areas for potential price reaction.
Could Solana reach new all-time highs in 2025?
According to analyst projections, if bullish momentum returns, SOL could target new highs at $297, $338, and potentially $385.
Investors should maintain strict risk management practices given the current market volatility and multiple technical factors at play.