Solana's $178 Setback: Will the $105 "Double Bottom" Be Its Saving Grace?
Solana (SOL) is at a critical juncture, having been decisively rejected at the $178 resistance level. This wasn't just a minor hurdle; it was a strong confluence of the value area high and a key high time frame supply zone, making it a formidable barrier for buyers. Since this rejection, Solana's price action has consistently formed lower highs and lower lows, a classic bearish pattern indicating significant weakness.
The failure to break above $178 has firmly established a short-term bearish structure for Solana. According to auction theory, the loss and subsequent retest of the value area high suggest the market is now seeking balance at lower price points, likely pulling the price towards the value area low. This points directly to the next crucial area of interest: the $105.89 support zone. This level is not arbitrary; it represents a significant high time frame support and a key structural low that could define Solana's immediate future.
For Solana's bulls, the hope lies in the potential formation of a "double bottom" pattern at this $105.89 level. If the price sweeps this area (dips briefly below before a strong bounce back) and is met with a robust response from buyers, it could confirm this often-reliable reversal signal. Such a move could allow Solana to reset, build new strength, and potentially pivot back towards its previous resistance.
However, the path forward remains challenging as long as Solana trades below $178. The probability of a move towards $105.89 is high. While a test of this support isn't inherently negative, its ability to hold is absolutely critical. Failure to defend $105.89 would confirm a more significant breakdown, risking a shift in the larger trend to a bearish outlook. Keep a close eye on volume signals near these lows, as they will be key indicators of renewed buyer interest or further capitulation.
