SOL at Crossroads: Can Dips Find Support Before Next Resistance?

The cryptocurrency market experienced a severe selloff over the past 24 hours, with Solana joining the broader downturn. Bitcoin and Ethereum both dropped more than 6%, while the overall market saw roughly $1.68 billion in liquidations—with long positions accounting for $1.57 billion of that total. Solana didn’t escape the carnage, declining over 6% and triggering approximately $68.54 million in liquidations. Yet despite the sharp pullback and current price hovering around $87.13, SOL’s technical structure suggests price may be approaching a level where a rebound becomes possible.

Market Turbulence Sends SOL Sharply Lower

The selling pressure driving SOL downward reflects panic-driven liquidations sweeping through the broader crypto space. Long positions bore the brunt of the unwinding, creating cascading forced selling that hit altcoins particularly hard. SOL’s 6% decline placed it in line with major assets like Bitcoin and Ethereum, but the technical picture tells a more nuanced story than simply “everything fell.” The liquidation cascade has pushed SOL into a technically critical zone where historical price defense has emerged in previous corrections.

The Wedge Pattern: Technical Clue for a Bounce?

From a technical standpoint, SOL’s daily chart has been forming an important price structure known as a right-angled descending broadening wedge. This pattern began taking shape after SOL was rejected near $146.90 in mid-November, setting off a series of lower highs. The distinguishing feature of a broadening wedge is expanding volatility—the swings grow wider as price moves lower, which is precisely what SOL has been exhibiting.

Broadening wedge formations often precede bullish reversals if support holds firm, making them valuable for traders monitoring recovery potential. The lower boundary of SOL’s wedge sits around $112.09. Today’s selling push forced SOL down toward this pivotal support level, where buying interest emerged. The fact that buyers stepped in near this zone, with SOL now hovering slightly above the support at $115.60, suggests demand may be materializing after the sharp liquidation-driven breakdown.

Support at $112.09: The Make-or-Break Level

The $112.09 support zone represents far more than just a number on a chart. Historically, this level has proven crucial in SOL’s recent price action, and its ability to hold will determine whether a rebound can develop. As long as this support remains intact, the broadening wedge structure stays technically valid, keeping the door open for upside attempts.

However, any recovery faces significant overhead resistance. The 50-day moving average currently sits near $130.32, and SOL has historically struggled to sustain rallies while trading below this level. This makes the moving average a formidable hurdle—any bounce should be considered a relief rally within a consolidation phase rather than confirmation of a trend reversal until price reclaims this average.

Two Paths Forward: Recovery or Further Decline

SOL sits at a critical inflection point where the next directional move matters significantly. If buyers successfully defend the $112.09 support and SOL manages to reclaim the 50-day moving average around $130.32, the path opens toward the upper wedge boundary near $146.90—a move that would represent a substantial recovery from current depressed levels.

Conversely, a decisive breakdown below $112.09 would invalidate the bullish wedge structure entirely. Such a break would likely expose SOL to additional downside or force it into an extended consolidation period. The technical framework that currently supports a rebound scenario would evaporate, shifting the technical bias sharply lower.

For traders and investors watching SOL, the coming days will be crucial. How price reacts around the $112.09 support zone will essentially determine whether a meaningful recovery attempt materializes or whether further weakness unfolds. The broadening wedge pattern has set the stage—now it’s a matter of execution.