- Solana ($SOL) compresses into major levels, and a possible breakout point is at $300 with Fibonacci extension and high historical momentum trends.
- Downside pressure may place the SOL at support levels of $169, $125 or $95, which show structural and psychological market levels.
- Over $116M in $SOL positions were liquidated recently, while CME Group launches regulated Solana options, increasing trading activity and market depth.
Solana ($SOL) is consolidating at key levels indicating a possible major move imminent. Traders are attentively watching price action as the next breakout or breakdown will define the short to mid-term trend. There is clear interest in the important price zones.
Bullish Scenario: Breakout Toward $300
If Solana breaks upward, technical projections suggest a strong rally. Lark Davis noted, “$SOL is tightening up between key levels. If it breaks upwards, the Fib 1.618 points toward $300+.” Similar past consolidations often preceded rapid upward moves.
Momentum indicators, including RSI moving out of neutral or oversold regions, may support this bullish trajectory. Breaking above local highs with solid volume could attract additional trading activity, accelerating upward movement.
Traders monitoring this scenario should watch for a decisive breakout. A clean move accompanied by strong participation would likely push SOL toward the $300 mark, aligning with historical extension targets.
Bearish Scenario: Breakdown to Support Levels
If SOL fails to hold, the price may decline to key support zones. Davis highlighted, “If it breaks down, the next possible support levels are at $169 → $125 → $95.” Each level offers potential stabilization points for the market.
Immediate support at $169 could temporarily slow selling pressure. Should that level fail, $125—previous resistance turned support—may act as the next target. The $95 level represents both technical and psychological support.
A breakdown may cause selling pressure to escalate, especially from leveraged positions. Traders waiting for a possible reversal or further bearish momentum must keep a pulse on these levels.
Market Activity and Options Launch
Solana has seen notable volatility recently, with liquidations affecting positions across platforms. SolanaFloor reported, “In the last 24 hours, over $116M in $SOL positions got liquidated amid a broader crypto market decline.” On-chain liquidations reached $75M, exceeding the $41M on centralized exchanges.
CME Group has launched Solana options regulated by the CFTC. According to SolanaFloor, standard and micro contracts are now available for trading. This development could provide additional avenues for hedging and speculative strategies.
Traders should monitor both on-chain activity and the introduction of derivatives. Combined with the current consolidation, these factors may dictate whether SOL breaks toward $300 or drops toward $125. A decisive move is expected to establish the next market direction.
