Solana holds near $166 as buyers defend key support after sharp correction

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Solana steadies near $166

Highlights

- Solana rebounds to $166 after testing key support at $155–$158.

- RSI and Supertrend indicate improving short-term momentum.

- Trend reversal requires reclaiming $175 and confirmation above $185.

While this reaction signals that the market still respects this support zone, Solana remains in a broader corrective trend that began after the October peak near $260. The daily chart continues to show pressure from a descending trendline that has capped every rally since early October. The rejection near $220 led to a decisive breakdown through the 50-day and 100-day EMAs, accelerating the selloff.

Parabolic SAR remains above current price, confirming that sellers still dominate the medium-term structure. However, the recent rebound was well-timed. Solana tested a historically active demand zone, one that triggered prior accumulation phases in both August and early September. As long as the token holds above $155, this base remains valid.

Resistance levels now define the next move

The challenge for buyers lies directly overhead. The 20-day EMA sits near $175, forming the first major resistance line. Above that, the 50-day and 100-day EMAs align between $185 and $191, creating a dense cluster that must be cleared for the broader trend to turn bullish. A daily close above $175 would signal that momentum has shifted, while a breakout beyond $185 could open the path toward $210. Failure to reclaim these levels leaves Solana trapped in a sideways recovery phase inside its larger downtrend.

Solana price dynamics (Source: TradingView)

On shorter timeframes, indicators suggest improving tone. The Supertrend on the 30-minute chart has flipped green, and Solana continues to hold above intraday support at $163. Meanwhile, RSI has recovered to neutral territory, showing that sellers are losing control as buying volume returns.

On-chain signals hint at confidence, not capitulation

Blockchain data supports the technical picture. During the recent decline, Solana recorded $4.19 million in net outflows, indicating that holders were transferring assets off exchanges instead of selling. Outflows during a selloff are typically seen as a sign of accumulation rather than panic, reinforcing the view that long-term investors remain confident in Solana’s structural story.

Still, the trend is not fully repaired. A sustained close above $175 would mark the first sign of recovery, with $185–$191 serving as the key confirmation zone. Losing $155 would change the narrative entirely, exposing the next liquidity pocket near $138, where buyers last defended aggressively in early summer.

Earlier analysis identified the $155–$158 region as the defining floor of Solana’s medium-term uptrend. The recent bounce confirms its importance once again. The key for bulls is to defend this base while reclaiming short-term EMAs to resume momentum toward $200 and beyond. Until those confirmations appear, Solana remains in a controlled recovery within a broader correction.

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