Solana (SOL) is navigating a critical price zone after retreating from its recent peak of $183, with bulls defending key support at $166. Recent profit-taking activity has put pressure on SOL’s upward momentum, though technical indicators suggest potential for renewed strength.
Key Support Level Holds Strong at $166
At press time, Solana trades at $169.43, showing resilience with a modest 0.70% daily gain. The cryptocurrency has established strong support at $166.82, successfully defending this level through multiple retests. This price action demonstrates significant buyer interest at current levels, potentially setting up for the next leg higher.
Technical Analysis Points to Potential Breakout
According to TradingView analysis, SOL’s recent price action forms a clear technical pattern:
- Strong support established at $166.82
- Key resistance levels at $177.51 and $183.86
- Bullish momentum building on 4-hour timeframe
- Volume profile suggests accumulation at current levels
Market Volume Shows Room for Growth
Trading volume has declined 36.15% to $2.3 billion in the past 24 hours, suggesting a period of consolidation. This reduced volume environment typically precedes major price moves, with traders watching for increased participation to confirm the next directional break.
Key Price Levels to Watch
Traders should monitor these critical price zones:
- Primary Support: $166.82
- Secondary Support: $142.25
- First Resistance: $177.51
- Major Resistance: $183.86
- Upside Target: $190-$200 range
Risk Factors and Trading Considerations
While the technical setup appears promising, traders should consider several risk factors:
- Declining volume needs to reverse for sustainable moves higher
- Break below $166 could trigger deeper correction to $142.25
- Overall market sentiment remains a key influence on price action
Conclusion: Solana at Decision Point
Solana stands at a crucial technical juncture, with strong support providing a foundation for potential upside. A decisive break above $177.51 could trigger renewed momentum toward the $190-$200 range. However, traders should remain vigilant of volume patterns and broader market conditions when positioning.