Solana, one of the standout projects in the cryptocurrency market, continues to experience sharp volatility in the short term. Following sell-offs from the 96 dollar resistance level and the liquidation of highly leveraged positions, the price is now seeking stability just above a key support area at 81.30 dollars.
Key support and below: 81.30 dollars under scrutiny
Solana slipped quickly from its recent 96 dollar highs, retracing to around 89 dollars. According to analysis shared by MCO Global using a four-hour chart, Solana is struggling to break past that resistance, and its bullish momentum seems to be weakening for now. Although the prospects for a strong upward move have diminished in the near term, the broader uptrend is still not completely invalidated.
Experts emphasize that preserving the 81.30 dollar support is vital for any potential larger-scale upward continuation. If SOL can hold this level, a renewed move towards 96 dollars may once again be on the table. However, if the support fails, lower price ranges between 72 and 78 dollars could come into focus.
A continuation of Solana’s upward journey depends first on the price maintaining above 81.30 dollars. Should this region be lost, Fibonacci-based supports at 77.95, 75.40, and 71.92 dollars are expected to become significant areas to watch.
Short-term technical supports stand out at 84.72 and 87.51 dollars. These levels could serve as temporary staging grounds during corrective periods, offering possible points where the price may pause its descent.
Leveraged positions liquidated, outlook in question
The recent downturn in Solana’s price was largely driven by liquidations of long positions with high leverage. According to the analysis by CW, the break toward the 88 to 89 dollar range in SOL was heavily influenced by forced selling pressure linked to these leveraged trades.
Data from CoinAnk’s chart shows that Solana could not sustain above the 90 dollar mark, with liquidity pooling largely around 90, 93, 96, and 99 dollar levels. These areas previously saw a build-up of significant leveraged positions.
Now that much of the excessive leverage has been flushed from the market, the severity of forced selling pressure has largely subsided. Nevertheless, this does not necessarily mean a swift price recovery is imminent. Solana will need new buyers to reverse its recent losses.
Currently, Solana is facing its first resistance at around 90 dollars. For the momentum to shift back to the upside, the price must clear this level. If SOL fails to do so, short-term pressure may persist. On the other hand, a hold above 90 dollars could be an early sign that sentiment is beginning to improve.
Solana remains below its previous liquidity bands, with the market watching to see if selling pressure will subside now that long positions have been cleared. Meanwhile, the price may test support at 87 dollars once again in the near future.
