The crypto markets began the weekly trade on a bearish note and dragged the BTC price below $112,000 breaking the crucial support at $112,500. With this, Solana, which demonstrated strong momentum earlier this month, is now consolidating. The buyers are trying hard to defend the key support levels while the sellers are leaving no stone unturned in building the required pressure. In the times when the pullback was believed to be short-lived, the bearish continuation for the day has landed the SOL price into a high critical zone.
Solana has displayed reduced volatility in recent sessions, hinting at an impending decisive move. Now the question arises: is the $200 support at risk?
Solana’s recent volatility is being amplified by surging trading activity, with 24-hour volumes climbing above $12 billion, signaling heavy participation from both buyers and sellers. This sharp increase often leads to rapid price swings as liquidity is tested. On the fundamentals side, institutional confidence remains strong, with roughly 590,000 SOL (~$123 million) added to holdings in the past month. Additionally, corporate staking commitments now exceed 8.27 million SOL (~$1.72 billion).
These figures highlight robust ecosystem demand, balancing short-term volatility against Solana’s steadily strengthening long-term outlook.
The Solana (SOL/USDT) daily chart shows the price trading within a well-defined ascending channel, with recent action pulling back from the upper boundary near $260. Current support lies close to the midline around $210–$215, aligning with the 50-day EMA zone. RSI has cooled to around 47, suggesting a shift from overbought conditions and signaling possible consolidation or further downside. Volume remains moderate, indicating no extreme capitulation yet. If SOL holds above the channel midline, it could attempt another retest of $250+, but a breakdown may revisit $190–$200 support.
One needs to notice that the SOL price is about to hit the Gaussian channel and if it does so, it may end up testing the lower bands of the channel as happened before. This suggests the bearish influence over the crypto could persist for a while, as the ultimate target of the Solana price lies around $250. Therefore, the price is primed to rise back to these levels, even though the bears drag the levels below $200 which could be for a short timeframe.
