🔥 Solana ($SOL ) is currently trading around $160.91, down from its recent peak of $206.30—a hefty drop of nearly 25% in just over a week. That steep correction has clearly shaken up the short-term momentum, but now the question on every trader’s mind is: is this the bottom, or just a pause before more downside?
If we look at the chart, SOL’s price has now tested and briefly bounced off a key local support around $155.83, which coincides with a psychological level and a former resistance turned support zone from early July. That’s the good news. The bad news? It’s still below all major moving averages. The 7-day MA sits just above at $161.57, acting as immediate resistance, while the 25-day MA looms at $174.16, which SOL must conquer to resume any meaningful uptrend.
The overall trend over the past two weeks has clearly turned bearish. Red candles are dominant, and the price has been making lower highs and lower lows—a textbook downtrend. However, the last few candles are showing small-bodied greens, indicating some signs of buyer interest creeping back in.
Volume has also decreased since the selloff peak, suggesting the panic is cooling off. But it’s not showing strong conviction yet, which means buyers are cautiously testing the waters—not diving in. The order book reflects this hesitation too: 60% of the orders are still on the sell side, with only 40% bid support. That imbalance hints that the recovery isn’t yet fueled by strong demand.
Looking ahead, if SOL can close and hold above the $165 level in the coming candles, it could attempt a mini rally back to the $173–$180 range. That would require a solid uptick in volume and a clear break above the MA(7). But if it fails to gain traction and slips below $155, there’s a real risk it revisits the $149–$150 zone next—especially if Bitcoin stays weak.
In short, Solana is at a make-or-break point right now. It’s holding onto support, but the momentum is still fragile. Bulls need to reclaim $165 fast—or this dip might turn into something much deeper.
