Solana (SOL) currently hovers at around $203.06, holding above $200 but losing pace. Analysts pointed to a rising wedge pattern and cautioned that this bearish pattern can usher in a correction and send SOL southward to the support range of $176–$160.
Solana is trading near $203.06, showing a 0.09% daily decline, with a market value of $110.03 billion. Despite recently holding above the $200 level, signals from the charts suggest possible weakness ahead.
Crypto analyst Ali has raised concerns about the short-term price outlook for Solana. On Ali’s most recent update, Ali referenced the construction of a rising wedge pattern–a technical indicator that generally initiates lower movements if confirmed.
As the chart that he had created reveals, the price of Solana has moved within converging trendlines that are characteristic of fading momentum. If this bearish setup plays out, Ali cautions that SOL could retreat toward the $160 support level, even though it is still hovering above $203.
The analysis also picks out key downside checkpoints. A drop through the $200 mark can put the path accessible onto $176 before ultimately testing the $160 region, both marked as key Fibonacci retracement areas. These areas will likely be support points where the buyers can re-enter.
If Solana manages to break above the upper resistance of this wedge, the bearish case could be dismissed. Such a move would signal renewed strength and potentially spark a continuation of its upward path.
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Derivatives on Solana registered a mixed trend in the last couple of days. The trading volume decreased sharply by 58.06% to $9.60B, and the volume in options decreased even more sharply by-79.28% to $885K.
However, open interest registered a modest rise by 3.61% to $12.90 billion, reflecting the existence of traders who continued to hold onto positions despite decreased aggregate trading activity. On the options side, open interest reduced by 11.23% to $5.42M, reflecting diminishing interest in fresh speculative bets in options relative to futures.
Based on the OI-Weighted data, the ratio only reads at precisely 0.0079%, suggesting weak leverage pressure by comparison to the total market activity. Ovarlly, Solana’s derivatives market is cooling in terms of trading flow, but the existing open positions hint at steady interest without signs of dangerous over-leverage.
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