Solana Faces Correction: Key Support at $118 and $109 Levels

• Solana’s price could dip to $109 before resuming its upward trend.
• Support around $118-$109 is crucial for Solana’s short-term movement.
• A pullback to $109 might set a higher low for Solana’s bullish rally.

The Solana (SOL) market is currently exhibiting critical price moves on the short-term time frame, where the chart speaks of a possible pullback before a larger upward move kicks in. On April 18, 2025, SOL trades at $134.71, with the chart indicating the odds of retracement toward $118-$109. This level shall become important in establishing the higher low in the present market structure and thus will provide an opportunity for traders to jump in and ride the mid-term wave up. A technical structure on the chart shows that a bullish continuation is possible after this correction, as long as the price remains above the higher low support area. 

Key Resistance and Support Levels

SOL price has recently formed a minor ascending wedge pattern, having the upper resistance at $139 and a lower trendline that has been tested and held consistently. However, as the price approaches the upper boundary of the wedge, it exhibits diminishing strength, suggesting an impending short-term pullback. This could be a healthy correction before the price resumes its bullish trend. The expected pullback should target the 0.618 Fibonacci retracement level at about $109, and the 0.382 level, about $118, acts as an immediate support zone.

The RSI shown below the price chart is yet another indication into the ongoing market momentum. The divergence in the RSI, with a lower high in the indicator while the price makes higher highs, shows passing strength in the bullish momentum. This bearish divergence indicates that the price may soon come under pressure to sell, triggering some anticipated pullback toward the support levels at $118 and $109. 

The Pullback and Potential Mid-Term Rally

In terms of market structure, the pullback toward the $118-$109 area is seen as a key area of the entry for long-term traders. The $109 level is particularly significant, as it coincides with the 0.618 Fibonacci retracement level, historically an area of strong price reversals. If SOL manages to bounce and stay above that level and form a higher low, it adds to the bullish narrative and potential targets back toward $139 resistance. 

That means this pullback is not a reversal but is simply a natural pause in the market to give traders an entry point before the next leg up. The mid-term outlook for SOL remains positive, with strong fundamentals for the growth of the network, along with increasing liquidity in the whole market. A hold above $118-$109 will signal a continuation of the bullish trend toward higher price levels, with targets in the $150-$160 range within a few months. 

Conclusion: A Healthy Correction For Solana Going Forward

Overall, Solana price movement is currently suggesting a short-term pullback to the $118-$109 zone, characterized by the historical presence of Fibonacci retracement levels, which is anticipated to set a higher low concerning market structure. A higher low would prove to be a strong entry point for longer-term traders.