Solana (SOL) Retreats to $162 as Bears Target Lower Support Levels

Quick Take

• SOL currently trading at $161.94 (-3.72% in 24h)
• Solana’s RSI at 43.42 suggests neutral momentum with bearish undertones
• 25% price decline from July peak driving current weakness

What’s Driving Solana Price Today?

The SOL price has faced significant selling pressure over the past week, with the most impactful catalyst being the sharp 25% decline from July’s peak of $206. This retreat to current levels around $162 reflects widespread profit-taking among investors who capitalized on Solana’s strong July performance.

Market uncertainty has amplified the selling pressure, creating a challenging environment for SOL holders. The decline appears to be part of a broader cooldown period following Solana’s impressive rally earlier in the summer, with traders now reassessing their positions amid changing market dynamics.

Adding to the bearish sentiment, Solana network activity has shown signs of moderation. Monthly non-vote transactions decreased from 1.3 billion in July to 1.1 billion in August, indicating reduced user engagement on the blockchain. While this decline isn’t dramatic, it coincides with the price weakness and suggests that network utilization is cooling alongside the token’s value.

The combination of technical profit-taking and reduced network activity has created a perfect storm for SOL price weakness, with traders now focusing on key support levels to determine the next directional move.

SOL Technical Analysis: Bearish Signals Emerge

Solana technical analysis reveals concerning signals across multiple timeframes. The SOL RSI reading of 43.42 sits in neutral territory but shows clear bearish momentum, suggesting sellers maintain control without reaching oversold conditions that might trigger a bounce.

The MACD indicator presents one of the most bearish signals, with SOL’s MACD histogram at -3.2853, indicating strong downward momentum. This bearish divergence suggests that selling pressure continues to build, potentially leading to further declines in the near term.

Solana’s position relative to its Bollinger Bands provides additional context for the current weakness. With SOL trading near the lower band at a %B position of 0.1664, the token is approaching oversold territory on this volatility-based indicator. This positioning often precedes either a bounce or a breakdown, making the next few trading sessions critical.

The moving average structure also supports the bearish outlook. SOL price currently trades below key resistance levels, with the EMA 12 at $169.64 and EMA 26 at $170.54 acting as immediate overhead resistance. The fact that shorter-term averages remain above the current price suggests any recovery attempts will face significant headwinds.

Solana Price Levels: Key Support and Resistance

Critical Solana support levels are coming into focus as the SOL price continues its descent. The immediate support zone sits at $155.83, representing the next major level that bulls must defend to prevent further deterioration.

Below this level, the strong support at $126.00 becomes the primary downside target. A break of the immediate support could trigger a rapid move toward this level, representing approximately 22% additional downside from current prices.

On the resistance side, SOL faces multiple hurdles on any recovery attempt. The immediate resistance at $206.30 coincides with the recent July peak, creating a formidable barrier for any bullish reversal. This level also serves as the strong resistance zone, meaning sustained buying pressure would be required to reclaim these heights.

The pivot point at $164.99 provides a near-term reference for short-term traders. SOL price action around this level will likely determine whether the current weakness extends or if buyers can establish a foothold for a potential reversal.

Should You Buy SOL Now? Risk-Reward Analysis

Based on Binance spot market data, the current SOL price presents different opportunities depending on your trading approach and risk tolerance.

For aggressive traders, the current weakness might offer a compelling entry point if SOL can hold above the $155.83 support level. The risk-reward ratio becomes attractive with a stop loss below $150 and targets toward the $178-$185 resistance zone. However, this strategy requires strict risk management given the bearish momentum.

Conservative investors should wait for clearer signs of stabilization before considering new positions. The combination of negative price action, reduced network activity, and bearish technical indicators suggests patience may be rewarded with better entry opportunities below current levels.

Swing traders might consider a staged approach, establishing small positions near current levels while keeping additional capital ready for potential lower entries around the $155 or $126 support zones. This strategy allows participation in any recovery while managing downside risk through position sizing.

The SOL/USDT trading pair shows daily volatility of $9.46 according to the ATR indicator, providing ample opportunity for both profit and loss. Traders should size positions accordingly and maintain strict stop-loss levels given this elevated volatility environment.

Conclusion

Solana faces continued pressure as the SOL price struggles with bearish momentum and reduced network activity. The break below key support levels suggests further weakness may be ahead, with the $155.83 level representing the next critical test for bulls. Traders should monitor volume and network metrics closely over the next 24-48 hours, as any signs of stabilization could provide the foundation for a potential reversal. Until then, the path of least resistance appears to be lower for SOL.

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