- Solana price retreats from a three-day high as former support tests recovery from the 200-day SMA.
- Weak stochastic and a clear rebound from a key SMA keep SOL buyers optimistic.
- Solana bulls may remain cautious below $232, while multiple key Fibonacci levels can test sellers past 200-day SMA.
- SOL recovery hopes hold, but a push toward the yearly high requires a strong catalyst.
Solana (SOL) retreats from a three-day high to $193 early Monday, as its weekend rebound from the 200-day Simple Moving Average (SMA) falters beneath a 16-week-old previous support-turned-resistance.
Notably, Solana’s retreat also takes clues from the U.S. Dollar’s run-up amid easing U.S.-China trade tensions, following U.S. President Donald Trump’s 100% China tariff news.
Read Details: Cryptocurrency Weekly Price Prediction: BTC, ETH & XRP Plummet under U.S. Risk Pressure
Solana’s latest pullback lacks strong support, as the Stochastic rebounds from oversold levels, softer trading volume, and falling market capitalization (market cap) fail to back sellers.
According to Santiment, Solana’s daily trading volume weakens for the third consecutive day, to $11.67 billion, after hitting a nine-month high on Friday. That said, the market cap also fades to recovery from a nine-week low while easing to $106.22 billion by press time.
With this, the SOL’s latest price action tests bullish bias, highlighting the need for a strong catalyst to recall buyers, despite strong technical support and recovery-favoring stochastic.
Solana Price: Daily Chart Keeps Buyers Hopeful Beyond $193
Solana’s clear breakdown of a 16-week previous support line, now resistance near $202, lacks acceptance as the Stochastic indicator flash oversold signals.
This favors the odds of the SOL’s rebound from the 200-day SMA support of $172.60; if not, then the 61.8% and 78.6% Fibonacci retracement of the quote’s April-September rise, respectively near $155.75 and $129.00, could challenge the bears.
In a case where the Altcoin remains weak past $129.00, the $100.00 threshold and the yearly low marked in April around $95.30 will gain the market’s attention.
Alternatively, Solana’s daily closing beyond the $202.00 support-turned-resistance could trigger a quick rise toward the $216.00-$217.00 resistance confluence, comprising the 50-day SMA and 23.6% Fibonacci ratio.
Also acting as an upside filter is a month-old descending resistance line surrounding $232.00, a break of which will allow the buyers to aim for the previous monthly high of $253.50 and the yearly peak close to $296.00, quickly followed by the $300.00 threshold.
Solana Price: Four-Hour Chart Points To Short-Term Bearish Bias
On the four-hour chart, the SOL fades recovery from the 78.6% Fibonacci retracement of August-September upside amid overbought Stochastic, suggesting a pullback toward the said Fibonacci support of $176.81.
Following that, August’s bottom of $155.82 and deeper levels discussed on the daily chart could lure the sellers.
Meanwhile, a 50% Fibonacci ratio and a 50-bar SMA guard short-term SOL recovery around $205.00 and $213.00.
However, the 200-bar SMA of $222.00 and a month-old resistance near $232.00, as well as a horizontal area dating back to September 14, near $248.00-$250.00, may test Solana buyers before directing to the daily chart’s higher levels.
Conclusion
As Solana’s recovery gains support from the 200-day SMA and oversold Stochastic, the recent retreat in prices appears elusive. This also defends the altcoin’s broad bullish outlook despite the short-term indecision, highlighting the need for a strong catalyst to witness a rally. As a result, this week’s U.S. data and crypto industry news will gain major attention and can move the markets.
Also read: Canary Capital Updates XRP & Solana ETF Filings, Cuts Fee to 0.50%
