- Solana trades near $202 as a wedge formation narrows momentum with $216 resistance overhead.
- Support rests at $190.99 and $177.29, with deeper zones near $167.24 and $157.39 marked as key.
- A confirmed breakdown could send SOL toward $160, making Fibonacci levels vital in guiding market direction.
Solana ($SOL) is showing a rising wedge formation on the 4-hour chart, suggesting potential downside risk toward the $160 level. The structure highlights weakening momentum despite recent gains, creating caution among traders.
Rising Wedge Formation Explained
The rising wedge is a bearish technical pattern that forms when price ascends while trend lines converge. It signals reduced momentum as higher highs and higher lows compress, often leading to breakdowns.
In the Solana chart, the wedge has developed since June, with price now hovering near $202.10. The upper trend line aligns with resistance above $210, while support holds along ascending lows that date back months.
Historical price action shows that rising wedges frequently resolve with downward breaks. Traders monitor Fibonacci retracement levels for likely support zones, which highlight potential targets if selling pressure accelerates.
Fibonacci Levels Mark Key Zones
Current retracements map several significant levels that traders watch closely. The 0.786 retracement sits near $190.99, marking immediate short-term support. A breakdown here could expose the 0.618 level at $177.29, offering the next cushion for price action.
Deeper targets include the 0.5 retracement at $167.24 and the 0.382 level at $157.39. These zones align with historical support, making them potential landing points if selling intensifies. A prolonged move could even push Solana back toward the 0.236 retracement at $143.83.
Upside resistance sits near the wedge peak around $216.77. If price reaches this level, traders may expect heightened volatility as momentum decisions unfold. Still, the overall pattern remains tilted toward a bearish outcome.
Potential Scenarios for Traders
Traders face two distinct scenarios as Solana consolidates within the wedge. First, a breakdown from current levels could send the token toward $160, matching analyst projections. Such a move would confirm the wedge pattern and align with typical retracement expectations.
Alternatively, Solana could attempt another retest of highs around $210–$216 before momentum fades. This path would prolong the wedge’s life but still increase the likelihood of eventual downside resolution.
Long-term traders watch how price interacts with Fibonacci zones. If support at $190.99 holds, near-term stability may persist. If it fails, cascading moves toward $177 and $167 become increasingly likely. The wedge’s compressed structure suggests that volatility is approaching.
