Solana is currently trading below the critical 0.618 Fibonacci retracement level, indicating a potential downward trend as the price drifts toward lower zones. The significant support line is positioned near the mid-range, and a definitive break below this could guide Solana into deeper price territories.
The analysis suggests a series of downward movements, projecting a pathway that could lead through various price points, starting from $90, then moving towards $54, and eventually reaching around $31. Currently, Solana trades near $131, having breached the 0.618 level, and is now approaching a key support region within the long-term structure.
After a notable rejection at the 0.618 level, the chart displays a marked breakdown. This rejection is visually represented by a red arrow on the chart, indicating the point at which the price reversed following a brief test. Additionally, Solana has crossed below the 50-week moving average, illustrated as a curved purple line, which has historically signaled earlier sell signals in past cycles. Each time the price dipped below this moving average, it typically preceded a more profound decline.
A horizontal band on the chart, denoted as “key support,” is currently the focal point for traders. Although the price is still above this line, it is inching closer under consistent downward pressure. The projected path illustrated in blue indicates a potential breach of this support level, leading to further declines through marked zones on the chart.
Historical data underscores the importance of this key support line, as it has previously served as a strong foundation during earlier price movements. Following a decline in mid-2023, Solana used this level to launch a significant rally into 2024, which peaked at a rising dashed trend line, creating a clear top structure.
As the price revisited this support line in 2025, it again faced challenges. A green tick mark on the chart indicates the last attempt to reclaim the 0.618 level, which ultimately failed, leading to another downturn. Previous attempts to stay above strong technical levels, as indicated by red tick marks, also fell short.
The 50-week moving average continues to trend downwards in relation to the current price, reinforcing the notion that sustained trading below this average often triggers longer declines. The current chart configuration suggests that the broader market trend may be shifting toward a downward trajectory.
The projected path on the chart illustrates an initial approach to the support line before potentially breaking through it. Following this breach, the price is expected to drop to $90, subsequently targeting $54, and finally descending to $31. Each step in this sequence aligns with the broader downward model depicted in blue.
On the right side of the chart, a more extended view reveals a gradual decline that progresses through several price levels over time. This trajectory begins at $90 and slides lower to the next zone around $54, before continuing toward $31. These projections align with a larger rounded structure forming beneath the 0.618 level. The key support line is pivotal as it represents a threshold for the next phase of price movement. If a significant break occurs, the chart suggests substantial downward pressure may manifest in the latter half of 2025.
As the price continues to navigate downward, observers are left with a crucial question: Can Solana maintain its key support line before the anticipated drop materializes, shaping the next significant price movement? The chart concludes with an extended trajectory reaching the $31 region, which lies at the lower end of the broader multi-year range.
