SOL Technical Analysis: Assessing Recovery Strength After Sharp -6% Sell-Off
Solana (SOL) has undergone a significant intraday correction, currently trading down -6.36%. Following a sharp liquidation event that touched a 24-hour low of $129.82, price action is now entering a consolidation phase on the 1-hour timeframe as bulls attempt to establish a local bottom.
Technical Breakdown:
RSI (6): Currently at 21.09. This indicates deep oversold conditions. Historically, readings near the 20 level suggest that selling momentum is overextended and a relief bounce or mean-reversion move is becoming increasingly probable.
Support & Resistance: Critical support is confirmed at $129.82. To the upside, the first major resistance level is identified at $138.78, followed by a secondary barrier at $142.01.
Trading Targets:
Entry Range: $131.50 – $133.80
TP 1: $138.50
TP 2: $142.00
SL: Below $128.50
Market Outlook:
Oversold / Potential Relief Rally. While the short-term trend is clearly bearish, the extreme RSI levels and high 24h volume ($3.06B USDT) provide the necessary ingredients for a volatile "dead cat bounce" or recovery leg. Traders should monitor for a bullish candle close above $135 to confirm that the immediate selling pressure has subsided.
