Solana (SOL) Hits Key Ascending Channel Support: Is a Rebound Ahead?

Date: Mon, February 17, 2025 | 08:30 AM GMT

The cryptocurrency market has been facing increased uncertainty, with major altcoins struggling to maintain momentum since the strong rally in November. Factors such as rising Bitcoin dominance and the chaos created by politically-themed memecoins have led to hesitation among investors.

Amid this turbulence, Solana (SOL) has not been immune, undergoing a 23% correction in the past 30 days and now testing a critical support level.

Source: Coinmarketcap

Ascending Channel Support

Solana has been consolidating within an ascending channel, characterized by higher highs and higher lows. The price has repeatedly tested both the resistance and support trendlines, reinforcing the importance of these levels.

Solana (SOL) Daily Chart/Coinsprobe (Source: Tradingview)

Recently, SOL faced rejection at the $295 resistance level, leading to a significant correction. As a result, the price has now retraced to $182, aligning with both the ascending channel’s lower boundary and the 200-day moving average (MA)—two historically strong support zones.

In previous instances, this trendline has acted as a springboard for price rebounds, offering bulls an opportunity to regain control. If SOL follows a similar pattern, we could see a strong recovery from these levels.

Adding to the intrigue, the MACD indicator is hinting at a potential shift in momentum. A bullish crossover in the coming days could signal a reversal, increasing the likelihood of a bounce.

Will Solana Rebound?

For SOL to stage a recovery, bulls must defend this key support level. A strong bounce from the current price and a reversal in MACD signals could ignite a fresh uptrend.

However, if this support fails to hold, SOL could be at risk of further downside, with the next support levels sitting at $168 and $156.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.