SOL seeks to recover: analysis of the key after hitting lows near $142

Solana (SOL) is experiencing a period of significant volatility, trading near $142 after a drop that pushed it to test critical support levels. In the last 24 hours, the token registered a rebound of 4.29%, reaching highs of $144.37, suggesting some buyer resistance at these depressed levels. With a market capitalization of $80.17 billion, SOL remains an important player in the ecosystem, but selling pressure has raised questions about the short-term direction.

The technical tension that defines SOL

The recent movement of Solana reflects a clear struggle between sellers and buyers. The break of the 23.6% Fibonacci retracement level at $165.65 was the turning point that triggered a cascade of liquidations. Since then, traders have focused on maintaining the $155 zone, considered a line in the sand.

Momentum indicators paint a discouraging short-term picture. The RSI has fallen to levels near 34, a territory that has historically marked oversold markets, while the MACD remains in negative territory. The 7-day moving average operating around $175.73 acts as a psychological barrier that, if not surpassed, could allow the decline to continue.

Why Bitcoin remains the determining factor

SOL’s weakness is not an isolated phenomenon. The total crypto market capitalization contracted by 2.84%, reaching $3.38 trillion, while Bitcoin consolidated its dominance at 59.86% of the total market cap. This capital flow toward the relatively safer asset explains much of the pressure on altcoins like Solana.

The 24-hour rotation of SOL at 6.4% highlights a concerning feature: market depth has decreased, amplifying price movements during periods of extreme volatility. Investors, increasingly cautious amid macroeconomic uncertainty and rising bond yields, prefer to concentrate exposure in Bitcoin rather than spread it across alternative projects.

Fundamentals that persist despite the storm

Despite the price decline, the Solana network maintains on-chain indicators worth noting. The total value locked (TVL) hovers around $10 billion, and active addresses have surpassed 2 million, showing that the ecosystem continues to grow in terms of adoption and developer activity.

This disconnect between fundamental metrics and price is common in crypto cycles. Strong fundamentals do not necessarily protect against short-term volatility, especially when macro sentiment turns defensive. The key to understanding Solana at this moment lies in recognizing that the price is being driven more by portfolio rotation dynamics than by changes in network health.

Critical levels to monitor

Resistances:

• $165: 23.6% Fibonacci - reclaiming this level could signal a change in sentiment
• $175–$180: 7-day SMA and short-term highs - a decisive zone to validate recovery

Supports:

• $155: Recently tested level, maintaining it is crucial
• $146.75: Previous low that could attract liquidation buyers
• $140: Psychological level that, if lost, would accelerate sales toward $130

Short-term scenarios

If Bitcoin stabilizes and risk appetite returns, Solana could recover the $165 in a matter of days, shifting attention to higher resistance levels. Renewed inflows into alternative assets would be the catalyst.

Conversely, if macro pressure persists and Bitcoin continues consolidating at highs, SOL could face tougher tests at $140, a territory where it has historically found support before initiating broader recoveries.

The key at this moment is patience. For traders, short-term risks outweigh opportunities until Solana demonstrates sustained stability above $155. The network’s health remains intact, but the market has the right to reprice as capital seeks relative safety.