Solana (SOL), which has been under severe selling pressure in the cryptocurrency market in recent weeks, sought balance in a narrow price range after the decline. While there are signs of compression in the short-term charts, the long-term technical structure indicates that the market is still moving on a risky ground. According to analysts, the biggest question for Solana is whether this squeeze paves the way for a bottom formation or a new decline.
Short Term Squeeze and Possible Accumulation Signals
Looking at the latest price movements, it can be seen that Solana moved horizontally in the range of approximately 78-92 dollars after the sharp decline. The fact that the price is stuck in this narrow range indicates that short-term momentum has weakened and the market is looking for direction. Especially the fact that the price remains below the main moving averages reveals that the general outlook is still cautious.
Some analysts interpret this squeeze as an early “accumulation phase”. Accordingly, while investors absorb the selling pressure, the market may have entered the process of establishing a base. Momentum indicators such as RSI also support this chart. Indicators at mid-levels give neither a strong sell nor a clear upward signal.
However, this chart does not mean a definitive bottom. The fact that the price remains below major averages indicates that buyers have not yet fully gained control. For this reason, the horizontal movement of the market is also considered as a temporary breathing phase rather than the beginning of a recovery.
Alarm Bells in Long Term Charts
Despite the short-term squeeze, a more cautious picture stands out in the long-term charts. In particular, the breaking of the rising trend line that has supported the price since the previous bull cycle is interpreted as an important development that weakens the technical outlook.
According to analysts, this breakout shows that the market has lost trend support and the risk of a broader decline has increased. Notable long-term support levels include around $74 and below, the $50 region. These levels are closely watched by investors as they are the regions where the price has consolidated in the past.
This technical weakness also coincides with the general cautious mood seen in the altcoin market recently. For example, a similar volume decrease and volatility increase in Ethereum and other major altcoins has been noticeable in recent weeks. Uncertainties regarding crypto regulations in the USA and the slowdown in ETF flows are also cited as factors limiting investor appetite.
