Solana Under Pressure: Is a Consolidation Phase Ahead? Technical Analysis for October 17, 2025
- Why Is Solana (SOL) Facing a Correction?
- Key Technical Levels for Solana (SOL)
- What Do Derivatives Reveal About SOL’s Trend?
- Solana Price Forecast: Two Scenarios
- Conclusion: A Pivotal Moment for SOL
- Solana (SOL) Technical Analysis FAQ
Solana (SOL) is navigating a sharp correction phase after breaking a key support level, mirroring Bitcoin's broader market retreat. This analysis dives into SOL's technical outlook, derivative market trends, and critical price levels to watch. With spot volumes surging 47% to $14.8B, the market shows heightened activity despite the downturn. Key supports at $170 and resistances at $237–$253 will dictate SOL’s next move. Derivative data reveals speculative unwinding and seller dominance, while liquidation heatmaps highlight volatile zones. Whether SOL holds $170 or breaks lower could determine its trajectory for weeks to come.
Why Is Solana (SOL) Facing a Correction?
Solana’s price hovers around $194, down 14% weekly, as Bitcoin’s slump drags the broader crypto market lower. Despite the drop, spot trading volumes jumped 47% to $14.8B, signaling intense activity during this pullback. The BTCC research team notes that long-term trends remain bullish (SMA 200 confirms upward structure), but short-term momentum is fading—SMA 20 flipped bearish, and oscillators show weakening buyer pressure. "This looks like a healthy reset after SOL’s extended rally," says a BTCC analyst. "The $170–$190 zone is where we’ll see if bulls still have conviction."
Key Technical Levels for Solana (SOL)
- $237 (volume-based high)
- $253 (previous swing high)
- $295 (all-time high)
- $170 (major accumulation zone)
- $156 (February 2025 low)
- $126 (2024 bull market breakout point)
What Do Derivatives Reveal About SOL’s Trend?
Futures markets echo the bearish tilt:
- Open interest declined (-22% weekly, CoinGlass)
- Cumulative Volume Delta (CVD) shows net selling
- $12M long positions liquidated in 48 hours
- Short squeeze risk: $230–$250 (massive seller liquidations)
- Downside trigger: $174–$190 (buyer liquidation cluster)
Solana Price Forecast: Two Scenarios
- Condition: Holds $170 support
- Targets: $210 → $237 → $253 (+30–52%)
- Catalyst: Bitcoin stability + spot ETF inflows
- Condition: Breaks $170
- Targets: $156 → $126 → $95 (-18–51%)
- Risk: Crypto-wide deleveraging event
Conclusion: A Pivotal Moment for SOL
Solana’s structure is bullish long-term but fragile short-term. The $170 level is the linchpin—hold it, and accumulation could fuel a Q4 rally; lose it, and we’re testing 2024’s breakout levels. Keep an eye on Bitcoin’s direction (it drives 68% of SOL’s variance, per TradingView) and derivatives flows for clues. As always in crypto, expect the unexpected—remember when SOL rallied 300% in 90 days last year? This article does not constitute investment advice.
Solana (SOL) Technical Analysis FAQ
What’s causing Solana’s price drop?
SOL’s correction stems from Bitcoin’s pullback, overheated derivatives positioning, and profit-taking after its 2025 rally. Technicals show weakening momentum below $200.
Is $170 a strong support level for Solana?
Yes, $170 aligns with the 0.382 Fibonacci retracement of SOL’s 2024–2025 rally and served as strong support in May 2025. A break WOULD target $156 next.
Could Solana reach $300 in 2025?
Potentially, but SOL must first reclaim $253 resistance. The path would require Bitcoin stability and renewed DeFi/NFT activity on Solana’s network.
