Solana falling wedge recovery is now underway. The token has rebounded more than 10% from its June low after a 36% correction from its May peak.
According to Coinmarketcap data, Solana (SOL) above near $67 on June 12. That marks an increase of 2.56% on the 24Hr level .
Why Solana falling wedge recovery matters
SOL’s price recovery follows a steep decline. Specifically, the token plunged roughly 36% from its May high near $96 to its recent bottom. Heavy liquidations, whale selling, and a broader market sell‑off weighed on sentiment.
Data from major exchanges shows that retail traders entered June with a strong bullish bias. Consequently, the market became vulnerable when SOL broke below the former support zone around $76. The breakdown triggered more than $89 million in long liquidations. Therefore, losses accelerated as leveraged positions forced to close.
Large holders added to the pressure by reducing exposure during the decline. Furthermore, weakening decentralized application revenues and softer network activity contributed to the selling pressure.
A falling wedge points to a possible recovery path
The daily chart shows Solana trading within a large falling wedge. This pattern has been developing since its January peak near $148. Specifically, the wedge formed through a series of lower highs and lower lows. Converging trendlines have compressed price action over several months.
Technical analysts generally view falling wedges as bullish reversal structures when price stabilizes near the lower boundary. Solana recently found support around the $60 to $62 region. Buyers stepped in after the liquidation‑driven decline.
Nevertheless, the daily trend remains under pressure. The first major hurdle sits near $76. That level previously acted as support before the June breakdown. Now, it represents a significant resistance area. A successful recovery above that zone would place attention back on the upper wedge boundary and eventually the January high.
Momentum indicators show early signs of improvement. For example, the daily RSI has recovered from oversold territory. Meanwhile, downside momentum on the MACD has started to ease after weeks of persistent selling.
Short-term breakout signals emerge near $68
On the four‑hour chart, Solana has formed an ascending triangle beneath resistance around $68. This structure developed after the June low as buyers continued defending higher lows. At the same time, sellers repeatedly capped advances near the same price level.
Liquidation data from CoinGlass adds another layer to the setup. Specifically, the platform’s weekly liquidation heatmap shows the largest concentration of short‑side liquidity sitting around the $68 area, directly above current prices.
Therefore, if buyers force a breakout through that resistance, the resulting short liquidations could accelerate upside momentum. The next liquidity cluster sits near $70. Additionally, the measured move from the ascending triangle projects a target close to $76, aligning with the former support zone that failed earlier this month.
Analyst caution remains
However, not all analysts are convinced that the rebound has developed into a full trend reversal. For instance, MCO Global said on X that Solana is still testing support and has yet to produce a bullish confirmation signal. The analyst noted that the larger decline remains the preferred outlook unless SOL breaks above $72.57.
“Bullish reversal requires a 5‑wave advance and a break above $72.57. The chart hasn’t shown that yet. Until it does, this is just support being tested.”
Bitcoin’s recent weakness continues to influence the altcoin market, including SOL. The largest crypto suffered its sharpest weekly decline since the FTX collapse. Market sentiment also remains tied to U.S. economic data. For example, May nonfarm payrolls increased by 172,000, exceeding expectations of 85,000. Consequently, this reduced expectations for Federal Reserve rate cuts.
Key levels to watch
For now, Solana’s recovery attempt depends on whether buyers can clear the $68 resistance zone. A breakout could open the door to $70 and potentially $76. Conversely, failure at current levels may leave the $60 support area exposed once again.