SOLUSD Analysis: Bullish Momentum Wiped Out in Sharp Sell-Off

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the SOLUSD for October 29, 2025.

Technical Analysis of SOLUSD

SOLUSD Daily Chart Insight

• Medium to Long-Term Outlook: Neutral with Cautious Undertones. Following a substantial decline from September’s peaks, the price has entered a consolidation phase, trading between the medium-term black moving average (resistance) and the long-term green moving average (support), reflecting market indecision. While the long-term uptrend remains technically intact above the green moving average, the failure to make new highs and the recent break below the black moving average signal weakening bullish momentum. The market has reached a critical juncture where the outcome of this consolidation will determine the next major directional move.
• Key Levels: The critical support zone sits at approximately $185.00 – $188.00, defined by the convergence of the long-term green moving average and the recent consolidation lows. This area has withstood multiple tests, demonstrating its strength as a key floor for price action. Meanwhile, the resistance zone at $205.00 – $210.00 represents the most significant near-term obstacle for bulls, marked by the confluence of the medium-term black moving average and a prior horizontal resistance level.

SOLUSD 2-Hour Chart Analysis

• Short to Medium-Term Outlook: Bearish with Critical Support Test Underway. The market has experienced a sharp, impulsive selloff in recent sessions, with price breaking decisively below both the short-term purple and long-term green moving averages, signaling significant weakness and strong selling pressure. This aggressive decline has erased the bullish trend that began in late October, and price is now testing the medium-term black moving average as a crucial support level. The market stands at a pivotal juncture—failure to hold this support would likely confirm a broader trend reversal to bearish conditions.
• Breakout Scenarios: Given the current momentum, a bearish breakdown is the higher probability outcome. A confirmed two-hour candle close below the support zone at $191.50 would signal continuation toward the next support at $185.00 and potentially the major low at $177.00. Conversely, a bullish reversal requires the price to hold firmly at $191.50 – $193.00 with bullish candle patterns, followed by a breakout above resistance at $196.00, which could trigger a rally toward the $200.00 – $205.00 area.

SOLUSD Pivot Indicator

• The chart reveals an intense, high-volume selloff that decisively breached multiple support levels and all three moving averages. In the aftermath of this steep decline, the price has settled into a tight consolidation pattern resembling a “bear flag,” which typically signals a temporary pause before the downtrend potentially resumes. Market sentiment remains firmly bearish.
• Bearish Breakdown: This scenario aligns with the current strong bearish momentum and would be triggered by a sustained 30-minute candle close below the support at $191.50. Such a breakdown would confirm the end of the consolidation phase and likely initiate the next leg down, with price targeting $190.00 and subsequently $188.00.
• Bullish Breakout: It represents a lower probability, counter-trend scenario that would be signaled by a decisive move and close above the resistance at $195.00. Such a breakout would suggest a short-term corrective rally is underway, with the first major target being the resistance at approximately $197.00, a level likely to attract significant selling pressure.

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