Solana Shows Early Signs of Stabilization — But Chart Warns of Possible Deeper Drop

After recent volatility, Solana (SOL) appears to be stabilizing — but technical indicators on the weekly chart still point to bearish pressure. Analysts highlight key support zones between $110–$119, and warn that failure to hold them could lead to a much deeper correction. Bulls remain hopeful a rebound might start soon — but the downside risk remains clear for now.

Coinccino Coinccino
Dec 4, 2025 - 12:16
Solana Shows Early Signs of Stabilization — But Chart Warns of Possible Deeper Drop

What’s Going On with SOL

According to the recent week-49 analysis of Solana: 

  • On the weekly chart, both the RSI and MACD have produced bearish crossovers — signs of continuing selling pressure and waning momentum. 
  • However — in the daily chart — there are hints of technical rebound: short-term bullish crossovers in RSI and MACD suggest a possible bounce in price. 
  • From a structural perspective, the report mentions a completed bearish wave formation under the Elliott Wave Theory. The current trajectory — if bearish scenario continues — could test low support levels between $110 and $119. 
  • On the flip side, if Solana manages to reclaim key resistance zones and reverse the trend, a bullish alternative remains possible — though this would require significant momentum and market support. 

In short: Solana is at a crossroads — near-term recovery is possible, but longer-term structure remains fragile.

What This Could Mean — Key Scenarios

Upside / Rebound Scenario

  • Short-term buyers push price upward — daily chart support holds, momentum improves.
  • If resistance zones are reclaimed, Solana could see a rebound toward mid-term targets, possibly around $145-$150, assuming broader crypto sentiment supports it. 
  • Renewed confidence and liquidity inflows could restore momentum, especially if supportive macro or crypto-sector developments occur.

Bearish / Downside Scenario

  • Weekly chart bearish signals persist — risking a deeper correction if support at $110–$119 fails.
  • A breakdown could trigger further losses, testing lower zones that may draw long-term investors or lead to consolidation.
  • Given recent macro and crypto-market pressures, volatility remains high — meaning swings could be sharp and unpredictable.

Broader Context & What to Watch

  • According to recent market-wide data, after a strong start in 2025, many cryptocurrencies including Solana have faced headwinds as broader economic and regulatory uncertainty weighs on risk-assets. 
  • Analysts say that for SOL to rebound, it needs not only technical support but also renewed capital inflows — possibly via institutional interest or renewed demand in DeFi / crypto-infrastructure sectors. 
  • Market participants should watch for volume changes, new developments on Solana’s network (upgrades, ecosystem news), and macroeconomic catalysts — as these could influence whether SOL follows an uptrend or slides further.

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