In a tweet, analyst Daan Crypto Trades noted that the price of Solana (SOL) is circling a major support zone.
Moreover, he highlighted that this zone is critical since it coincides with several key technical indicators. How SOL reacts to this area could determine if it rebounds or continues its downward trend.
What you'll learn 👉
Technical Confluence Draws Trading Interest
Daan Crypto Trades identified several overlapping indicators highlighting the $175-$180 range as a pivotal area for Solana.
Among these is the Golden Fibonacci Retracement, a widely followed technical level. The range between $175.43 and $170.83 aligns with the 61.8% and 65% retracement levels from a recent swing high to low, making it a potential reversal point in bullish market structures.
The daily 200 moving averages (MA and EMA), known for acting as strong dynamic support levels, are also converging within this zone.
Additionally, a long-standing diagonal trendline—previously serving as both support and resistance—intersects with the same price range. This combination of factors adds weight to the possibility of a bounce if the zone holds.
Current Price Trends and Volume Activity
Solana is currently trading near $178.91 after a steep decline from recent highs. The drop has been accompanied by elevated trading volume, signaling selling pressure.
For a reversal to materialize, the volume must decline, and bullish candles should appear near the support range. The $175-$180 area is viewed as a last defense for SOL’s bullish momentum in the short term.
A daily close above this range could pave the way for a recovery, potentially targeting resistance levels near $200. However, if the price sustains below $175, it could open the door to further declines, with potential support around $150 or the $120-$125 range.
Read also: Monero (XMR) Price Approaching Resistance: Is a Major Move Coming?
Analyst’s Outlook and Strategy
In the tweet, Daan Crypto Trades emphasized a patient approach to this setup. He plans to wait for a confirmed reaction in the $175-$180 range before taking action.
He noted that wicks below this level are possible but would only consider a swing position if the daily close shows signs of strength, such as bullish candles or higher lows.
While no immediate moves are planned, the analyst highlighted the importance of this zone in shaping Solana’s trajectory in the coming days. A failure to hold above the range could signal a continuation of the current bearish trend.
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