- Solana closely oscillates at a range of $177.75 to 195 with decreasing volatility in terms of price consolidation between the significant moving averages.
- The $170-175 zone is also a solid base; holding on to it is important in avoiding occurring additional downside risk.
- SOL’s compression between the 200EMA ($189–$190) and 200MA ($176) signals a buildup before a likely volatility expansion.
The volatility of Solana (SOL) is declining, and it is maintaining the proximity to the major moving averages following the recent price fluctuations. The token is now trading at $187.77 which is a 2.5 percent decrease in the last one week. The chart indicates that SOL is squeezed between the 200-day moving average (MA) and 200-day exponential moving average (EMA), which is a usual action following a sharp change such as that experienced on October 10. This period of consolidation means that the market is becoming stable with traders awaiting the next directional breakout.
Price Compression Between Support and Resistance Levels
Recent candles indicate that the highs are lower, and the lows are higher, indicating that the price is squeezing inside a decreasing range. The last support is at 177.75, which is close to the 200MA and resistance lies between 195 and 200 of a price. It is worth noting that the $170-175 support zone has served on numerous occasions as a support zone to rebound the prices. Maintaining this level is essential for short-term stability, as losing it could expose the asset to additional downside pressure.
Volume data also supports the observation of equilibrium forming. Trading volume has gradually declined as price volatility decreases. This behavior commonly precedes an expansion phase once one side of the compression range breaks. Until then, the consolidation continues to define SOL’s short-term technical structure.
Moving Averages Offer Crucial Reference Points
The 200EMA and 200MA are now guiding levels for traders monitoring Solana’s next move. The price currently hovers between these lines, emphasizing their importance as dynamic support and resistance zones. The daily 200EMA, located near $189–$190, has acted as an overhead barrier, while the 200MA near $176 has offered consistent price support.
With the current setup, Solana trades in a confined structure where both sides appear balanced. The tightening of range however shows that there is a possibility of more volatility after the market picks sides. SOL trading structure as of the near term is still within the range of $177.75 to $188.34.
