Solana (SOL) Price Prediction: New Descending Wedge Formation Emerges After Sharp Correction

The Solana price today is trading around $169.25 after a sharp correction from the $184 region seen earlier this week.

Solana price today is trading around $169.25 after a sharp correction from the $184 region seen earlier this week. The altcoin has struggled to hold gains above $180, with a descending wedge forming on the 30-minute chart.

As of now, Solana price remains under key pressure near the $170 mark, with near-term momentum hinging on a decisive breakout above $172.60.

Solana price action consolidates between support and resistance zones

On the 4-hour chart, SOL continues to consolidate between the $165 support and $172 resistance zone. The Solana price update shows that each bounce from the $165 level has been met with selling near the mid-$170s, suggesting the formation of a descending triangle.

This formation, if resolved to the downside, could trigger a deeper retracement toward the 100-EMA near $163 or the 200-EMA at $154.

Meanwhile, Bollinger Bands are narrowing on the 4-hour timeframe, suggesting Solana price volatility is compressing ahead of a potential breakout. The 20-EMA ($171.90) and upper Bollinger Band ($173.37) are forming a critical confluence zone for immediate resistance.

A break above this band could trigger renewed momentum toward $180-$185.

From a daily perspective, the price is still holding above a long-term breakout region near $160. This former resistance now acts as a key floor, and unless broken, the broader bullish structure remains valid.

Weekly charts also highlight a recent rejection from the 0.382 Fibonacci retracement at $184, which aligns with long-term resistance.

Why Solana price going down today?

The answer to why Solana price going down today lies in both momentum loss and short-term overbought signals.

On the 30-minute chart, RSI has cooled to 55.04 from previously overbought levels above 70, reflecting declining buying pressure. Meanwhile, MACD is hovering near the neutral line, failing to produce a strong bullish crossover despite recent price spikes.

Adding to the caution, the Ichimoku Cloud on the 30-minute timeframe shows price trading below the cloud base, with the Tenkan-Sen and Kijun-Sen lines beginning to flatten. This suggests indecision in trend direction. The Stochastic RSI also hit overbought levels above 96 before turning downward, indicating the potential for a short-term retracement or continued choppy action.

In essence, while the Solana price spikes earlier this month took price near the $185 mark, the market is now digesting gains. Without a breakout above $173-$175, SOL remains vulnerable to extended consolidation or minor downside reversion.

Short-term Solana price outlook for May 18

Looking ahead, Solana price must reclaim the $172.60-$175 zone to confirm a short-term bullish reversal. A clean breakout above $175 could open the door for a retest of $180 and eventually the 0.382 Fib level near $184.

However, failure to do so may send price back toward the $165-$163 support range, which coincides with key EMA and Bollinger Band levels.

Momentum indicators remain mixed, and Solana price action appears range-bound within a broadening pattern. Traders should monitor for a volume spike and potential breakout from the descending triangle on the intraday chart.

Until a clear directional bias is confirmed, expect Solana price volatility to persist, with bulls and bears battling for short-term dominance between $165 and $175.