TLDR
- Current Price: Solana (SOL) is trading close to $130 after facing significant volatility, stabilizing near key support levels between $121-$123.
- Technical Indicators: A death cross between the 50-day and 200-day moving averages is forming, historically signalling extended bearish momentum.
- Market Structure: SOL is trapped in a descending channel, with persistent lower highs since mid-September.
- Buyer Sentiment: A Relative Strength Index (RSI) reading of 33 shows mild bullish divergence, as aggressive dip buying occurs around the $121-$123 support zone.
- Future Outlook: Bulls need to overcome resistance between $135 and $140. If $121 fails, SOL could decline towards $107 and $95.
Solana recently found itself near the $130 mark on November 24, 2025, following a tumultuous week characterized by intense selling pressure. After testing various critical support levels, the cryptocurrency has reached a point of temporary stability.
One of the most compelling technical patterns currently forming is known as a "death cross." This occurs when the 50-day moving average crosses below the 200-day moving average, indicating potential long-term bearish momentum. This is particularly noteworthy as it marks the first occurrence of a death cross for Solana since early 2023.
Current Trading Channel
Since mid-September, Solana has been navigating a descending channel, which has consistently produced lower highs. Attempts to break free from this channel have faltered at around the midpoint, demonstrating a market structure defined by a lack of upward momentum.
The crucial support range between $121 and $123 has become a focal point for buyers, who have shown resilience in defending this zone. Recent candlestick charts reveal long lower wicks at these levels, indicating a strong interest from buyers stepping in to purchase during dips.
Relative Strength Index Insights
At present, the Relative Strength Index (RSI) sits at 33, suggesting that Solana is approaching oversold conditions. This indicates a potential reversal or at least a pause in the downtrend. As the price continues to test support, a mild bullish divergence is forming, hinting at a possible shift in market sentiment.
Key Resistance Levels Ahead
Looking forward, the immediate resistance sits at the $135 mark, coinciding with the 61.8% Fibonacci retracement of the recent decline from $145 to $121. Should the price break above this level, the next barrier appears at $140.
Reclaiming the $144 to $146 zone would serve as a strong signal that momentum may be returning. Furthermore, crossing the upper boundary of the descending channel near $172 is essential for a confirmed trend reversal, providing traders and investors with a clearer signal of potential bullish movement.
Downside Risks
Despite some signs of recovery, significant downside risks remain. Should the key support at $121 fail to hold, the next targets would be $107 and $95. These levels represent previous price gaps from earlier this year, and breaking below $121 could trigger a wave of aggressive selling, consistent with the implications of the death cross pattern.
In terms of immediate support, the $127 level serves as the first line of defense below current prices, with $124 as another critical support point. A close beneath $124 could prompt further downside momentum heading toward $120.
Momentum Indicators
Interestingly, the hourly Moving Average Convergence Divergence (MACD) indicator is beginning to gain momentum in bullish territory, while the hourly RSI has climbed above the 50 mark. These momentum indicators suggest a tentative improvement from the oversold extremes felt earlier in the trend.
Recently, Solana has started a recovery wave, managing to push above both the $125 and $128 levels. This upward movement aligns with similar recoveries seen in major cryptocurrencies like Bitcoin and Ethereum, as SOL managed to climb above the important $130 threshold and the 100-hourly moving average.
In summary, while Solana’s recent market behavior shows signs of resilience, traders and investors should remain vigilant to both the bullish and bearish signals presented by technical indicators and support/resistance levels.
