Analyst Reveals Solana Price at Crossroads as Key Support at $117 Face Test

Solana (SOL) price seems to be at a crucial price level. The crypto recently reached a new all-time high near $295 but failed to sustain that level.

Recently seen bearish divergence on the weekly chart raised questions about the strength of the recent minor uptrend. SOL price was testing the $117 area. It is a zone that combines horizontal support with the 1.618 Fibonacci level.

Investors are watching the aforementioned support, which has held firm for over a year. The outcome of this test may define Solana’s medium-term direction. Two possible paths are now in view: a strong upward continuation or a gradual decline below key technical thresholds.

What’s Next for Solana Price?

According to analyst “The Scalping Pro,” Solana price action reached a defining moment after the $295 peak.

The move has created a bearish divergence on the weekly Relative Strength Index (RSI), where the price formed a higher high while the RSI printed a lower high. This divergence is generally a sign of declining bullish momentum.

The Solana price is now revisiting the $117 level, an area identified by both horizontal support and the 1.618 Fibonacci extension. This price zone has served as a stable foundation over the past year, making its current test relevant to traders. The market’s reaction to this level could shape price behavior in the coming weeks.

Source: X

However, a recent analysis shows that the altcoin is facing intense selling pressure after losing its $125 support level. A whale offloaded over $7.6 million in SOL, adding to the bearish momentum as technical patterns point to a further downside.

Technical Indicators Suggest a Turning Point

RSI currently stands at 40, a level that previously aligned with local bottoms in SOL’s past corrections. In multiple instances, this RSI zone has coincided with the beginning of upward movements. Whether this pattern repeats will depend on how the price responds to the $117 support level during the ongoing retest.

A sustained move below this price level could confirm the bearish divergence and initiate a deeper correction.

On the other hand, if Solana price can generate strong buying pressure and maintain this support, it could prompt renewed optimism in the market. Volume will play a key role in confirming the next direction.

More so, according to the Parabolic SAR, the indicator dots have now shifted below the price, suggesting a possible trend reversal to the upside.

According to the last price action, Solana bounced from a low of $122 and is holding above $125, signaling short-term bullish momentum. This shift could hint at a relief rally if buying pressure continues.

Source: TradingView

Two Possible Scenarios for SOL Price

The current price setup presents two potential outcomes. In the bullish scenario, Solana price rebounds strongly from the $117 level, supported by increasing RSI and volume. This could lead to a renewed upward push, possibly leading to fresh highs in the current market cycle.

Momentum in such a case could contribute to broader participation in the ongoing altcoin rally. The alternative path suggests that if the bounce from support lacks strength, Solana price may enter a gradual decline.

A breakdown of the $117 zone would weaken bullish sentiment and could lead to extended downside movement. This scenario would likely slow down the altcoin rally and raise caution among market participants.