Solana price remains under corrective pressure as fading bullish volume and unresolved liquidity below the price open the door for a move towards the $57 Fibonacci extension.
Summary
- Support at $170 Turned into Resistance Confirming Bearish Market Structure
- Low volume bounces indicate weak demand, increasing downside risk
- The $57 Fibonacci Extension is critical as it acts as a potential capitulation and reversal zone
solana (SUN) price action continues to trade within a broader corrective phase after losing key structural support early in the cycle. While short-term bounces have emerged, the lack of strong bullish participation suggests these moves may be temporary rather than trend-defining.
As Solana struggles to reclaim previous support that has now turned into resistance, technical conditions are lining up for a deeper bearish move before any significant reversal can occur.
With volume decreasing and liquidity increasing below current price levels, attention is now shifting towards a key high-term Fibonacci extension zone near $57, a level that may act as a pivotal turning point for Solana’s next big move.
Solana Key Technical Price Points
- The former support at $170 has turned into resistance, confirming the bearish structure.
- Bullish bounces are occurring with low volume, indicating weak demand
- The $57 Fibonacci Extension stands out as a macro reversal zone, with a strong confluence
The current corrective move accelerated after Solana decisively broke below the $170 level, which had previously acted as a major support area. Once this level was lost, the price quickly moved into resistance, reinforcing the bearish shift in the market structure. Multiple attempts to recapture this area have failed, confirming that sellers remain in control.
Following the breakdown, Solana saw a strong downward expansion into the high-term support region near $157. This move reflected a capitulation-style selling, although so far the price has failed to officially retest the exact support level, instead printing a higher low just above it. While this may seem constructive at first glance, the broader context suggests that unfinished business remains below the current price.
Low Volume Bounce Increases Downside Risk
One of the most notable aspects of Solana’s recent price action is the lack of bullish volume accompanying the bounce from the $157 region. In healthy pullbacks, price rebounds are usually supported by expanding volume, indicating strong buyer conviction. In this case, however, volume has remained subdued, indicating that the bounce may be due more to short covering than genuine accumulation.
This type of low-volume rally often leaves prices vulnerable to further declines, particularly when liquidity remains concentrated below recent lows. As a result, the probability increases that Solana could revisit the lower support zone to completely eliminate the remaining sell-side liquidity.
$57 Fibonacci Extension Comes into Focus
From a Fibonacci and market structure perspective, the 0.618 extension near $57 represents a critical macro level. This zone aligns with multiple technical factors, including areas of historical demand and structural liquidity pockets, making it a high probability target if the current corrective phase continues.
These extension levels often act as magnets for price during strong corrective moves, particularly when broader sentiment remains cautious and volume fails to confirm reversals. A move towards $57 would likely coincide with increased volatility and emotional selling, conditions that often precede significant market lows.
Importantly, a test of this level would not necessarily indicate a further breakout. Rather, it may represent the final leg of the corrective structure, setting the stage for a possible macroeconomic reversal if buyers intervene decisively.
Conditions for a bullish reversal
If Solana enters the $57 Fibonacci extension zone, the quality of the reaction will be crucial. A strong defense of high-term support, combined with expanding volume and clear signs of bullish rejection, would increase the probability of a sustainable reversal.
If such a reversal were to occur, Solana could begin a rotational move back towards higher resistance levels, with the $170 region once again in focus. This would effectively keep the broader trading range intact, transforming the recent decline into a full corrective cycle rather than the beginning of a prolonged downtrend.
What to expect from the next price action
From a technical, price action, and market structure perspective, Solana remains vulnerable to further declines as bullish volume continues to fade. The $57 Fibonacci Extension is the most important downside target and possible reversal zone.
Until that zone is convincingly tested or invalidated, traders should remain cautious of near-term rallies. Volatility is likely to remain elevated, with price action driven by liquidity dynamics rather than sustained trend changes. How Solana reacts near $57 may ultimately determine whether the market is preparing for a deeper correction or laying the groundwork for its next major bullish phase.
