Solana Near a Bottom After the Recent Selloff: Time to Buy?

Solana has endured one of the toughest periods in its history. After months of persistent selling pressure, the cryptocurrency has fallen more than 80% from its all time high and recently touched the important $60 support area.

While market sentiment remains cautious, some analysts believe the recent decline may be approaching exhaustion.

Recent price action has started attracting attention because SOL managed to rebound from a key support zone while several technical and on-chain indicators began showing signs of stabilization.

Although no indicator can guarantee a reversal, traders and investors are now debating whether Solana is entering a historic accumulation zone that could support a recovery in the months ahead.

Key Takeaways

• Solana recently rebounded from the $60 support area, which many traders view as a critical level.

• Several analysts believe SOL is entering an oversold accumulation zone based on technical indicators and historical patterns.

• Network activity and institutional interest remain relatively stable despite the prolonged market downturn.

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Why Analysts Believe Solana May Be Near a Bottom

The recent recovery from the $60 region has sparked renewed interest in Solana’s market structure.

While prices remain far below previous highs, some analysts argue that the downside may be becoming more limited.

Oversold Conditions Are Reaching Extreme Levels

One of the most discussed signals is Solana’s monthly Relative Strength Index.

According to market observers, the indicator has reached more oversold levels than those seen during the 2022 market collapse.

Historically, extremely oversold readings do not guarantee immediate rallies.

However, they often indicate that selling pressure has become stretched and that markets may be approaching a period of stabilization.

Another factor drawing attention is Solana’s streak of eight consecutive red monthly candles.

This is the longest losing streak in the asset’s history and highlights just how severe the correction has become.

Historical Fibonacci Levels Are Being Tested

Some analysts have also pointed to the 0.5 to 0.618 Fibonacci retracement zone. In previous market cycles, Solana experienced significant recoveries after entering this range.

Key levels currently being monitored include:

• $60 as major support

• $70 as initial resistance

• $76 as the next important resistance area

If buyers continue defending current levels, analysts believe the market could gradually attempt a move higher.

Read Also: Solana Faces $50M SOL Token Unlock as Price Tests $74 Critical Support

On-Chain Data Shows Signs of Resilience

Price action tells only part of the story. Several on-chain metrics suggest that Solana’s ecosystem remains healthier than the market decline might imply.

User Activity Remains Stable

During major market downturns, blockchain networks often experience a sharp drop in activity. Solana, however, has shown relatively stable participation levels despite the price decline.

Active wallet addresses have remained steady, suggesting that users continue interacting with the network.

This resilience is important because strong network engagement often supports recovery once market sentiment improves.

Development Continues Despite Market Weakness

Developer activity is another area that investors closely monitor. Projects that continue building during difficult market conditions are often better positioned when demand eventually returns.

Solana continues to attract developers due to its transaction speed and relatively low costs.

Ongoing development across decentralized finance, stablecoins, and tokenized real world assets has helped maintain confidence in the broader ecosystem.

While short term traders focus on price fluctuations, long term investors often view continued development as a positive sign that the network remains active and relevant.

Read Also: Solana USDC Inflow: Why SOL Price Is Still Weak Despite Fresh Liquidity

What Could Happen Next for SOL?

Although some indicators suggest a potential bottom, Solana still faces important challenges before a sustained recovery can begin.

Current Solana Price Snapshot

• Price: $64.64

• 24 Hour Change: -2.14%

• 24 Hour High: $67.48

• 24 Hour Low: $63.55

• 24 Hour Volume: 391,046 SOL

• 24 Hour Trading Volume: $25.65 million

• Market Cap: $37.55 billion

These figures show that SOL remains under pressure in the short term, but it continues to hold above the important $60 support area that many analysts are watching closely.

Key Levels Bulls Must Reclaim

The first major test sits between $68 and $69. Liquidation data shows significant leverage positioned around this area.

A breakout above this zone could trigger short liquidations and create additional buying momentum.

Beyond that, traders are watching the $70 and $76 levels closely. A successful move above these resistance zones would strengthen the case for a larger recovery.

Risks Still Exist

Despite the improving outlook, risks remain. Some analysts believe a deeper decline toward the $40 to $50 range remains possible if broader cryptocurrency markets weaken significantly.

Bitcoin’s performance will likely play a major role. If Bitcoin remains stable, oversold assets like Solana may have an opportunity to recover.

However, renewed market weakness could delay any recovery scenario. For now, the market appears to be transitioning from panic selling toward cautious observation.

Whether this becomes a true bottom will depend on both technical developments and broader market sentiment.

Read Also: Solana Crashes to 14-Month Low as DeFi Capital Rotates Into Hyperliquid

Conclusion

Solana’s recent rebound from the $60 support area has renewed discussions about whether the cryptocurrency is approaching a market bottom.

Extreme oversold conditions, historical technical levels, stable network activity, and continued development all contribute to a more constructive outlook than many investors expected just weeks ago.

However, caution remains important. While several indicators suggest selling pressure may be easing, no single signal can confirm that a long term recovery has begun.

Key resistance levels still need to be reclaimed, and broader market conditions remain an important factor.

For investors interested in tracking Solana and other digital assets, staying informed about both technical and fundamental developments is essential.

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FAQ

Is $60 an important support level for Solana?

Yes. Many analysts view $60 as a major psychological and technical support level that could influence Solana’s future direction.

Why do some analysts believe Solana is oversold?

Indicators such as the monthly Relative Strength Index have reached historically low levels, suggesting selling pressure may be becoming exhausted.

What resistance levels are important for SOL?

The most closely watched resistance levels are around $68, $69, $70, and $76.

Is Solana’s network still active despite the price decline?

Yes. On-chain data shows relatively stable wallet activity and ongoing development across the ecosystem.

Does a bottoming signal guarantee a price recovery?

No. Bottoming signals can indicate improving conditions, but market outcomes depend on many factors, including investor sentiment and broader cryptocurrency market trends.

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