Solana appears to be stabilizing as it successfully defends the crucial support range between $120 and $125, hinting at a potential recovery phase. This development comes after a prolonged decline over several months, during which the asset”s price had significantly dropped. Recent trading patterns indicate a stronger defense from buyers, suggesting that the market may be forming an early bottoming structure.
The market”s behavior around this support zone is noteworthy, as momentum indicators are beginning to shift in favor of buyers. This is underscored by the presence of a bullish divergence in the Relative Strength Index (RSI), which shows higher lows while the price itself has recorded lower lows. Although the RSI has not yet crossed above the neutral 50 level, its upward movement from oversold territory often aligns with early bottoming phases rather than ongoing downtrends.
Veteran trader Matthew Dixon has highlighted that Solana”s recent price action reflects a clear stabilization effort. After completing a multi-month downtrend, the asset is currently hovering around the $125 to $135 mark, which previously acted as a significant support level. The consistent defense of this range has curtailed selling pressure and enabled buyers to re-establish their positions in the market.
Dixon”s analysis points to a potential gradual ascent towards the $145 to $160 range, driven by decreasing selling momentum and a supportive RSI structure. Traders are keenly observing whether the price can retest the $135 mark and subsequently push past the next resistance level at $145. In contrast, an alternative scenario may see Solana remain within a consolidation band between $120 and $140, particularly if broader market conditions remain stable. Such a scenario often reflects a period of indecision before a more significant price movement occurs.
The least favorable outcome for Solana would involve a drop towards the $110 level. According to Dixon, this would necessitate a definitive close below the $120 support, accompanied by rising trading volumes. Broader market weakness, especially in Bitcoin, could trigger such a downturn. For now, the overall price structure suggests that Solana is in the early stages of a potential bottoming process, with momentum gradually returning to the market.
