SOLANA HOLDS SUPPORT
2025-01-14
Category: None

The Solana (SOL) daily chart demonstrates a significant bounce after testing the key horizontal support level around $175.26. Yesterday's candle showed a long lower wick, indicative of substantial buying interest at lower levels, but the close was still relatively weak, below the $190 region. Today, Solana is attempting to sustain its recovery, but upside momentum remains limited for now.

The 50-day moving average, currently sitting at $210.50, has been acting as dynamic resistance since late December, and reclaiming this level will be critical for any bullish continuation. Meanwhile, the 200-day moving average at $173.14 provides a broader structural support base, closely aligning with the horizontal support zone.

Volume during the recent sell-off was elevated, signaling significant market participation in this range. While yesterday's bounce indicates buyers stepping in, further confirmation in the form of a higher close and follow-through is required to validate a reversal attempt. For now, the $175-$190 zone remains a critical battleground, and failure to hold above $175 could open the door to further downside.

RSI is hovering near oversold territory, suggesting that the asset may be nearing a short-term bottom. However, a stronger bullish catalyst or broader market strength will be necessary for Solana to regain its upward trajectory. Watch for volume and price action around the 50 MA to gauge the strength of any recovery.