After weeks of heavy selling pressure, Solana is showing signs of recovery as bullish traders work to halt its downward slide. The cryptocurrency has rebounded nearly 10 percent from its recent lows, climbing back toward $169 after dipping below the $160 mark earlier this month.
This recovery follows a sharp decline that began in mid-October, when Solana broke through multiple key moving averages after losing its $200 support level. The drop of more than 25% from its previous highs left traders wary of a deeper structural correction. Yet, increasing buying activity and improving sentiment across the broader crypto market are now signaling renewed optimism.
Bulls Battle to Regain Key Levels
Currently, Solana is trading just below its 50-day moving average at $179 and remains under its 200-day exponential moving average at $185. A strong breakout above these thresholds would be crucial in avoiding a death cross formation, which typically signals extended consolidation or further losses.
Market data indicates that the long-term moving averages and former breakdown zones around $180 to $185 represent the next major resistance area. A sustained push beyond this range could open the path for a retest of the $200 level, a move that would likely restore market confidence and reduce the likelihood of bearish dominance.
Moreover, Solana’s relative strength index has recovered to around 39, hinting at the return of buying momentum. Trading volumes have also increased slightly, suggesting renewed participation from both institutional and retail investors. This combination reflects a cautious but growing belief in the potential for stabilization.
Outlook Remains Cautiously Optimistic
If Solana maintains its current momentum and overcomes the $185 resistance, it could mark the beginning of a broader recovery phase. However, failure to hold above $160 might invite renewed selling pressure, confirming that bears still control the market.
At the moment, Solana’s resilience highlights a potential turning point. While traders remain watchful, the token’s ability to sustain this rebound will determine whether it evolves into a sustained uptrend or merely another brief rally.