• Solana retested the base of its long-term ascending channel for the second time in a week.
• Price closed the week at $186.51, marking a 5.5% decline amid volatile swings.
• The coin remains in a corrective phase, holding between key moving averages.

Solana’s price movement this week drew attention as it revisited the lower boundary of a nearly three-year ascending trend channel.

Market watcher Master Kenobi noted that Solana has touched this baseline six times since 2023, each instance previously marking strong accumulation zones and temporary shifts in trend direction.

During the week ending October 18, the token opened around $197 and surged to $211 before reversing sharply to $174. It ultimately closed at $186.51, recording a weekly decline of about 5.5%. 

Despite the drop, a long lower wick on the weekly candle suggested renewed buying interest at lower levels.

The price structure shows mixed sentiment: sellers remain active near the highs, but buyers continue to defend key supports. 

Its latest bounce resembles the pattern seen in September last year, just before the strong rally in the fourth quarter, raising optimism that history may repeat.

Also Read: Solana Price Prediction: Can SOL Hit $250 After Breaking 18-Month Resistance?

Technical Setup Points to a Corrective Phase

From a technical standpoint, Solana’s short-term outlook appears mildly bearish as the 20-week exponential moving average (EMA) near $193 now sits above the price. This area acts as immediate resistance and a key line for traders watching for a potential trend recovery.

Below, the 50-week EMA around $177 provides the first solid support zone. A close above this level would maintain the medium-term uptrend, while a close below could trigger deeper correction targets near the 100-week EMA at $153 or even the 200-week EMA near $121.

Indicators such as the Relative Strength Index (RSI) at 49.6 show neutral momentum, while the Moving Average Convergence Divergence (MACD) remains positive but softening. These signals reflect a slowing bullish drive, consistent with a consolidation phase rather than a clear reversal.

Competition Heats Up as Solana Nears Crossroads

Solana’s inability to reclaim its early 2025 all-time high adds pressure as competition intensifies. XRP and BNB continue to challenge Solana’s market position, with BNB showing more aggressive market performance in recent weeks.

Still, the broader structure remains constructive as long as Solana trades above its 50-week EMA. A decisive close above $193 could restore bullish momentum toward $211 and beyond. Conversely, a breakdown below $177 would expose the coin to further downside risk.

Also Read: Ethereum or Solana? The Battle for Developer Dominance in 2025