- Solana hovers around $145, facing resistance below the 100-day moving average at $154.
- Analysts highlight $170 as a key breakout point, with $350 and $900 as next targets.
- Solana dropped 67.23%, echoing 2021’s dip, hinting at a rebound cycle ahead.
After showing promise in early April, Solana (SOL) has entered May with strong headwinds. The asset is trading around $145, struggling to reclaim its 100-day simple moving average at $154. This level acts as a ceiling for now, as bearish pressure remains dominant in the market. Despite attempts to rebound, the digital currency has failed to sustain upward movement, and participation from online investors has dipped notably.
The current state of Solana’s price reflects this fatigue. Indicators such as the MACD are showing signs of weakness. A recent bearish crossover confirms the short-term outlook has shifted. With the MACD line dipping below the signal line and histogram bars fading, upward strength is losing ground. The Relative Strength Index has also dropped from its recent peak of 60 to around 55, showing that buyer energy is thinning out.
Crypto trader Hardy, however, believes a turnaround may still be in play. He pointed out that Solana is forming a textbook bull flag on the 4-hour chart, often a bullish signal. The price is now consolidating in a descending channel between $152 and $144 after an earlier jump. “I’m going to long this baby soon,” Hardy said, predicting a breakout that could turn the tide.
Solana Key Resistance Could Shift Momentum
Solana’s support zones sit at $136.56, $125.82, and as low as $112.80, providing some safety if further drops occur. But analysts say the focus should be on the upside potential. The next big hurdle sits around the 1-week MA50, close to the $170 mark. That’s also where a key blue trend line comes into play. If this barrier is breached, it may convert into solid support, opening a path back to $200.
TradingShot, another analyst group, pointed out the strength in April when Solana bounced from the 1-week MA200. That upward movement continued through the month, with several green weekly closes building momentum. This has set the stage for May’s battle to break above $170, which would confirm a bullish continuation.
Reaching that level could mark the return of confidence. If Solana breaks out, the next key mark to watch is $350. TradingShot points to that level as the higher high in the wedge pattern. A successful move beyond $350 could signal the start of a broader rally, one that might take the price as high as $900.
Bulls Eye Long-Term Breakout
The path to $900 isn’t without hurdles. Solana has already faced a 67.23% correction in the last three months, mirroring the 2021 decline. But analysts see this as part of a longer cycle.
Given that the recent 3-month correction was -67.23%, identical to the last correction (May 2021) of the previous Cycle, we expect one final rally to the 2.0 Fibonacci extension at $900, if the Higher Highs trend-line breaks,” TradingShot explained.
This vision of a final rally depends heavily on reclaiming several key technical levels in sequence. From breaking the $170 trend line, to pushing past $350, each step must hold for a sustained climb. For now, it remains below resistance and shows signs of slowing momentum, but long-term bulls see a clear target forming.
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