Solana Price Analysis: Is SOL Setting Up for a Bullish Correction or Another Leg Lower?
Solana is trading at a critical turning point after an extended downtrend. Following a sharp sell-off from the November highs, SOL has spent the last several weeks consolidating above the $118–$120 zone. This area has now been defended multiple times, shifting focus to whether the current structure can support a bullish correction or if the SOL price is merely pausing before a continuation lower.SOL Price Structure: Compression Below Key ResistanceOn the 4-hour chart, Solana continues to trade below a descending trendline, keeping the broader structure bearish. However, price action has compressed into a tightening range, forming a reversal wedge pattern. This signals a reduction in downside momentum, even though sellers still control the trend.Importantly, each dip toward the $118–$120 region has been met with responsive buying. While this does not confirm a reversal, it shows that downside follow-through is weakening—a necessary condition for any corrective bounce to develop.Momentum Signals Are Improving, but the Trend Is Not ReversedMomentum indicators are starting to diverge from price. On the 4-hour timeframe, RSI is printing a bullish divergence, suggesting selling pressure is fading despite price remaining capped. On the daily chart, a double-bottom-like structure is forming, adding to the base-building narrative.That said, these are early signals, not confirmation. Until Solana reclaims key resistance zones, the move should be treated as a counter-trend correction, not the start of a new uptrend.Key Levels That Will Decide the Next MoveTraders should stay focused on clean, well-defined levels:Major support: $118–$120Near-term resistance: $132–$136Heavy supply zone: $145–$158 → $160Invalidation: Sustained break below $118Bearish continuation target: $105 → $100As long as SOL trades below $145–$160, sellers retain higher-timeframe control. Any rally into this zone should be evaluated carefully for acceptance or rejection.What Needs to Happen for a Bullish CorrectionFor a meaningful corrective rally to play out, Solana needs:A break and acceptance above the descending trendlineSustained trading above $132 with volume expansionMomentum is holding firm above the RSI midlineWithout these confirmations, upside moves risk becoming lower-high setups rather than structural reversals.What the Solana Chart Is Signaling Right NowSolana price is showing conditions for a bounce, but not confirmation of a trend shift. The $118–$120 support remains the key line in the sand. Holding it keeps the door open for a corrective move toward $145–$160, while failure would likely reopen the path toward $100.For traders, this is a reaction zone, not a conviction long. Let price prove strength before assuming the worst is over.FAQsIs Solana currently in a bullish or bearish trend? Solana remains in a broader bearish trend. Current signals suggest a potential short-term correction, not a confirmed trend reversal. Is this a good time to buy Solana for traders? This is a reaction zone, not a high-conviction entry. Traders should wait for confirmation above resistance before considering long positions. What is Solana price prediction for 2026? SOL potentially ranging between $180–$250 in 2026 if adoption grows, with downside risk toward $120 if market conditions weaken.