Solana Holds Above $157 as Bulls Regain Control After Sharp 6% Reversal
Solana (SOL) saw a sharp pullback after touching a high of $163.65, shedding nearly 6% before recovering to trade above $157 by Tuesday morning. The price action reflects heightened market volatility as bulls and bears vie for control near key psychological levels.
Despite the correction, institutional interest in SOL appears undeterred. Canary Capital’s recent filing for a spot Solana ETF and the launch of WalletConnect’s token on the network underscore the growing adoption of the ecosystem. On-chain data also supports this narrative, with rising daily active addresses and a 26% increase in transaction volumes.
Analysts remain cautiously optimistic, with some pointing to $165 as the next resistance level to watch. Long-term projections remain bullish, bolstered by Solana’s expanding developer base and ecosystem traction as a leading Ethereum alternative.
Technical Analysis Highlights
- SOL traded in a wide range of $9.23 (5.64%), peaking at $163.65 before falling to $154.42.
- Heavy selling around $163.50 led to a sharp 4% drop during the 20:00-21:00 window.
- Key support formed at $154.50, sparking a recovery to the $157 level.
- Immediate resistance stands at $157.70, with price currently consolidating just above $157.30SOL bounced from a low of $156.18 with notable volume spikes near 07:51, confirming a local bottom.
- A short-term uptrend channel developed between $156.40-$156.70, now transitioning to broader consolidation above $156.50.
- Volume and price structure indicate buyer control at current levels, with bullish sentiment stabilizing the correction