Solana (SOL) Price Faces Correction After $208 Peak - Support Test at $185
Joerg Hiller Jul 24, 2025 14:34
SOL trades at $185.81 (-3.06%) after retreating from July highs above $208, with bulls defending key support levels amid mixed technical signals.
Quick Take
• SOL currently trading at $185.81 (-3.06% in 24h) • Solana's RSI at 61.64 suggests neutral momentum after recent pullback • Price defending critical support zone following 25% weekly surge to $208 peak
What's Driving Solana Price Today?
The SOL price is experiencing a natural correction after reaching $208.60 on July 21, marking its highest level in six months. This pullback to around $185.81 reflects the cooling momentum that technical analysts identified, with bearish divergence appearing on lower timeframes as predicted in recent market analysis.
Despite the current retracement, the broader context remains constructive for Solana. The network's surge past $200 was driven by significant ecosystem expansion, with total value locked (TVL) exceeding $10 billion and market capitalization hitting $107 billion. This institutional confidence provided the fundamental backing for SOL's impressive 25% weekly gain.
The current price action aligns with technical predictions that identified potential resistance around the $208 level. Trading volume on Binance spot remains robust at $972.8 million, indicating continued market interest despite the pullback.
SOL Technical Analysis: Mixed Signals Emerge
Solana technical analysis reveals a complex picture with both bullish and bearish elements. The SOL RSI currently sits at 61.64, placing it in neutral territory after pulling back from overbought conditions. This suggests the recent correction may be healthy profit-taking rather than a trend reversal.
The MACD histogram shows a positive 2.43 reading, indicating that Solana's bullish momentum remains intact despite the price retreat. However, the divergence between the MACD line (10.51) and signal line (8.07) is narrowing, suggesting momentum may be slowing.
Solana's position within the Bollinger Bands provides additional insight, with the current price sitting at 0.76 of the band width. This indicates SOL is still closer to the upper band ($201.22) than the lower band ($138.19), maintaining its bullish bias despite the correction.
The moving average structure remains supportive for SOL price action. Trading above the 7-day SMA ($187.47) and well above the 20-day SMA ($169.70) confirms that buyers are defending higher levels. The 50-day SMA at $156.93 provides additional support confluence.
Solana Price Levels: Key Support and Resistance
Critical Solana support levels are being tested as the price seeks to establish a new base. The immediate support zone sits between $181-183, which aligns with recent technical analysis identifying this as a dynamic support area where buyers must defend.
The SOL resistance structure shows multiple layers above current prices. Immediate SOL resistance sits at $206.30, which closely matches the recent high of $208.60. A break above this level would target the stronger resistance zone around $220, as identified in recent Elliott Wave analysis.
For SOL/USDT traders, the pivot point at $185.94 is critical. Holding above this level maintains the bullish structure, while a break below could target the stronger support at $145.90. The 52-week range from $105.40 to $261.97 provides broader context for position sizing.
The Average True Range (ATR) of $10.39 indicates typical daily volatility, helping traders set appropriate stop-loss levels and position sizes based on current market conditions.
Should You Buy SOL Now? Risk-Reward Analysis
Based on Binance spot market data, the current SOL price setup offers different opportunities for various trading styles. Swing traders might consider the $181-183 support zone as an entry point, with stops below $175 and targets at the $206 resistance level.
For conservative investors, waiting for a clear break above $206.30 with volume confirmation could provide a safer entry point, targeting the $220 resistance zone identified in recent technical analysis. This approach reduces the risk of catching a falling knife during the current correction.
Day traders should monitor Solana support levels closely, as a bounce from current levels could provide quick profits back to the $195-200 range. However, the bearish divergence on lower timeframes suggests caution is warranted for aggressive long positions.
Risk management remains crucial given SOL's daily volatility of $10.39. Position sizes should account for potential moves to the next support level at $145.90 if the current correction deepens beyond expectations.
Conclusion
The SOL price correction from $208 to $185.81 represents a healthy pullback within an overall bullish trend structure. While short-term momentum has cooled, the fundamental drivers including $10 billion TVL and expanding ecosystem adoption provide support for higher prices. Traders should watch the $181-183 support zone for potential bounce opportunities, while a break above $206 resistance would signal continuation of the broader uptrend toward $220 targets.
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