After tumbling 36% from its May peak near $96, Solana (SOL) has found its footing, climbing over 10% from a June low around $61. The cryptocurrency now trades near $67, with traders focusing on a giant falling wedge pattern that could propel it back toward its January high of about $145.
The wedge formed since January, compressing price through a series of lower highs and lower lows. Such patterns often precede bullish reversals when the asset stabilizes near the lower boundary. SOL recently bounced from the $60–$62 zone, where buyers absorbed selling pressure after heavy liquidations. Over $89 million in long positions were wiped out when SOL broke below the $76 support level, as retail traders had positioned too bullishly entering June.
Whale activity added to the downdraft, with large holders reducing exposure. Weaker decentralized application revenues and softening network activity also contributed to the sell-off, according to market watchers. Nonetheless, the daily RSI has climbed out of oversold territory, and the MACD shows easing downside momentum after weeks of selling.
Resistance now stands near $76, which flipped from support to resistance earlier this month. A successful break above that level would turn attention to the wedge’s upper boundary and eventually the January peak. On the 4-hour chart, an ascending triangle has formed below $68, with buyers defending higher lows while sellers cap advances. Liquidation data from CoinGlass reveals heavy short-side liquidity clustered near $68, meaning a breakout could trigger short squeezes that propel SOL toward $70 and potentially $76.
Nevertheless, analysts urge caution. MCO Global noted on social media that SOL remains in a support test phase until it shows a five-wave advance and breaks above $72.57. Without that confirmation, the larger downtrend still dominates. Bitcoin’s recent weakness, including its steepest weekly drop since the FTX collapse, continues to weigh on altcoins. Additionally, stronger-than-expected U.S. nonfarm payrolls data—172,000 jobs added versus the 85,000 forecast—have dampened hopes for Federal Reserve rate cuts, pressuring risk assets.
For now, Solana’s fate hinges on the $68 resistance. A breakout could initiate a move toward $76 and beyond, while failure may leave the $60 support exposed again. Traders are watching closely as the wedge pattern unfolds.