Solana under pressure: SOL course correction or countermovement?
Solana (SOL) is currently showing weak technical signs on the daily chart. The price is forming a potential ascending triangle structure, the bullish potential of which depends largely on whether the support in the green zone can be defended. Should this area break down, a continuation of the correction would be likely, with the price initially working through a large part of the lower wick and subsequently potentially targeting the 800-day EMA.
A look at the accompanying heatmap shows that almost all available downside liquidity has already been absorbed in the current price range. In contrast, there is significantly more untouched liquidity in the upper price zones, which could potentially create room for a short-term upward correction.
Despite this potential relief, Solana currently exhibits a weak market structure. The broader market, particularly Bitcoin, continues to exert downward pressure. Since October 10th, Bitcoin has failed to sustainably break through key resistance levels. Every upward move is consistently sold off, keeping the entire altcoin sector under pressure.
For Solana, the 50-day EMA remains a key price level. Only if the price reclaims this line to the upside and closes above it could this be considered a structural signal for a potential trend reversal. Until then, the risk of further pullbacks remains elevated.
4-hour chart: Shows a constructive structure with potential upward momentum
The 4-hour chart shows a similar technical picture to the daily chart. If the price doesn't establish a clear reversal at the current zone, the existing support area is at risk of breaking. Repeated tests of this zone have already visibly weakened the support, and another attempt increases the probability of a downward break.
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The RSI (Relative Strength Index) is currently in oversold territory, which offers potential for a short-term technical recovery. However, the MACD (Moving Average Convergence Divergence) remains trapped in negative territory and has not yet shown any clear signs of a trend reversal in momentum.
The current liquidation level profile clearly shows a pronounced short delta in the current price range. Almost all long positions have already been liquidated, resulting in a surplus of short positions. This situation could lead to a short-term technical rebound if the market begins to squeeze out these short positions.
Despite this possibility, the overall situation remains difficult. The Bitcoin price continues to dictate the pace, making it hard for altcoins to initiate independent recovery movements. Solana is therefore under constant pressure as long as the overall market does not stabilize sustainably.
About the author
Bastian Keller (Bitbull) has been operating independently in the Forex market since 2015 and has been a full-time cryptocurrency trader since 2018. He actively shares this expertise on various social media platforms, particularly on his YouTube channel “Bitbull Trading,” which has over 140,000 subscribers. Bitbull also launched the TradeMania platform, designed to simplify the entry into cryptocurrency trading for beginners.
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