Solana (SOL) remains firm at a critical support level of $209, as the recent bearish rally failed to break above this level. After recent price fluctuations, SOL’s ability to hold steady in this key area has sparked speculation that a recovery may be on the horizon. With market dynamics shifting and technical indicators giving mixed signals, the question remains: Will the bulls take responsibility and push SOL higher, or will there be further decline?
Bearish Pressure Eases: Can Solana Bulls Step In?
Solana saw a notable reaction at the $209 support level, an area that has proven important in maintaining its bullish structure. After testing this key level, the price showed early signs of a potential recovery, suggesting that downward pressure is easing and that buyers may be regaining control.
Furthermore, the reaction at $209 captured the attention of market participants, with many anticipating a rally towards the next resistance level at $240. In order to sustain this upward movement, SOL must break through nearby obstacles, such as the $240 and $260 resistance areas. Successfully crossing these levels could pave the way for a broader uptrend.
Conversely, if the rebound falters, a retest of the support at $209 could occur, increasing the risk of a deeper correction. So far, the initial reaction and signs of recovery provide hope that Solana will position himself for another step in the coming sessions.
Technical indicators point to a possible turnaround
The 4-hour Relative Strength Index (RSI) has fallen into oversold territory, a level often associated with increasing selling pressure and potential downtrend exhaustion. Currently, the RSI is trying to rise outside this area, indicating a potential shift in momentum as buying interest begins to emerge again.
Breaking out of an oversold zone is usually seen as a bullish signal, indicating that sellers may be losing their dominance and paving the way for buyers to regain control. If the RSI succeeds in rising above the oversold threshold, this could lead to a larger recovery phase, especially accompanied by an increase in volume and positive price action.
Finally, Solana price continues to trade above the 100-day simple moving average (SMA), an important indicator that confirms its broader upward trajectory despite the recent market volatility.
Maintaining a position above this moving average indicates that optimistic sentiment remains intact, even amid short-term corrections. This level serves as a key threshold where buyers are likely to intervene, boosting the price and preventing further declines. Historically, staying above the 100-day SMA is often preceded by significant upward moves, making it a closely watched indicator by market participants.