Technical analysis by ScottMelker about Symbol SOL: Buy recommendation (12/22/2025)

SOL is trading right on top of a key horizontal support zone around 126, a level that has repeatedly acted as demand earlier in the cycle. Price is still in a broader daily downtrend, with the 50-day and 200-day moving averages overhead and sloping lower, but the location matters. This decline is occurring directly into major support. The more important signal is in momentum. RSI recently hit oversold and has now broken its downtrend, even as price continued to grind lower. That creates clear bullish divergence – momentum is improving while price makes marginally lower lows. This is often what exhaustion looks like near the end of a corrective move. In simple terms, sellers are losing control. Bears managed to push price into support, but failed to generate new downside momentum. That doesn’t guarantee an immediate reversal, but it does meaningfully increase the odds of a relief bounce or at least consolidation rather than a clean breakdown. From here, 126 is the line in the sand. Holding this level keeps the bullish divergence intact and opens the door to a move back toward the declining 50-day moving average. A decisive break below support would invalidate the setup and point to further downside. For now, this is the type of spot where Solana has historically found its footing – weakness into support with momentum turning first.