Solana (SOL) entered a consolidation phase, as both price action and technical indicators point to a potential short-term retracement. 

As of Saturday, February 7, Fibonacci retracement levels are converging between the $104 and $110 zone, marking a critical area where price often stabilizes after strong momentum expansions. 

According to crypto analyst Crypto Pulse, such zones typically act as reset areas before the market attempts its next directional move.

Source: Crypto Pulse X Post

Historically, sharp rallies across major digital assets are frequently followed by corrective pullbacks into prior structure. For SOL, a controlled move into this region could attract renewed buying interest and help confirm support. 

However, a failure to hold may open the door to a deeper correction, leaving traders focused on momentum shifts, volume behavior, and confirmation signals before positioning for continuation scenarios.

Also Read: Solana Liquidity Boost: Multiliquid & Metalayer Launch Instant RWA Redemption Backstop

SOL Technical Outlook Points to Early Stabilization

According to TradingView, as of Saturday, February 7, the asset is still in a short-term downtrend, as it has been making lower highs and lower lows since the end of January. 

After a strong drop, which took SOL to the mid-$70s, it bounced back up into the $85 region. The move is looking like a corrective move, not an impulsive one, as it is still trading below previous breakdown levels around $90-$95.

Source: TradingView

Momentum indicators are suggesting stabilization, but no reversal in the trend. The RSI has risen from oversold levels but remains below 50, which does not suggest strong bullishness. 

The MACD has shown a bullish crossover with improving bars, which could suggest short-term relief for SOL, but if SOL continues to hold below the level, there could be further downside and consolidation.

Solana Hits Record TPS While Costs Remain Stable

Solana recorded a historic on-chain high on Friday, February 6, with a record high averaging 1,852 TPS. According to the crypto analyst Vibhu, on-chain aggregators recorded their best day since October 10, suggesting a possible increase in retail and protocol participation. Yet, Solana’s median fees remained extremely low at $0.000487 with minimal network volatility.

Source: Vibhu X Post

At the same time, other networks like Base faced transaction inclusion delays and usability issues, with median transaction fees 26 times higher than those on Solana. 

Other milestones for the Solana blockchain network included the supply of USDT on Solana crossing $3 billion, record tokenized equities transaction volume, peak wrapped asset transactions, and more active wallets transacting on Solana than all other blockchains combined.

Also Read: Solana Crashes Below $100: Could $73 Be the Next Key Support?