Solana Gears Up to Reclaim $85... Has It Already Hit Bottom?

▲ Solana (SOL) / AI-generated image

Solana (SOL) has reclaimed the $80 support level and broken above a key technical resistance line, laying the groundwork for a full recovery from its recent decline and a potential entry into a bullish phase.

According to cryptocurrency media outlet NewsBTC on February 25 (local time), Solana halted its recent slide to $76 and has since regained the $78 and $80 levels in succession, showing a solid recovery trend. Senior analyst Aayush Jindal noted that Solana is sending positive signals after breaking above a major descending trendline formed near $81 on the hourly chart. Currently, Solana is trading above the $80 level and the 100-hour simple moving average, entering a short-term stabilization phase.

Technical indicators show that Solana has surpassed the 50% Fibonacci retracement level of the decline from the $86.68 high to the $75.64 low, indicating a revival in buying sentiment. Although bears are mounting strong resistance near the 61.8% Fibonacci retracement level at around $82.50, the firm defense of the $80 support level is raising expectations for further gains. The Moving Average Convergence Divergence (MACD) is also gaining momentum in bullish territory, signaling favorable short-term technical conditions.

Solana’s immediate price target stands at $82, and a breakout above this level would bring it face-to-face with key resistance zones at $84 and $85. Jindal projected that if Solana decisively clears and holds above the $85 resistance zone, a strong rally could unfold, potentially reaching $92 and even as high as $95. The Relative Strength Index (RSI) remaining above 50, confirming buyer dominance, further supports this bullish outlook.

On the other hand, if Solana fails to break through the $82 resistance, renewed downside pressure remains a possibility. In the event of a pullback, $80 will serve as the primary defense level, and failure to hold it could lead to successive tests of the $79 and $77 support levels. A daily close below $77 could push prices down toward the $74 region in the short term, extending the downward trend.

In conclusion, Solana has established a rebound base around the $80 level, with the reclaiming of $85 likely to serve as a crucial turning point for its mid- to long-term trend. Its synchronized movement with major assets such as Bitcoin (BTC) and Ethereum (ETH), while displaying independent recovery momentum, is seen as a positive sign. Market participants are closely watching changes in trading volume around the $82 breakout level to gauge whether a new upward phase is beginning.

Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.