SOL Drops After Higher High as $128 Support Zone Takes Center Stage

⬤ Solana’s taking a breather after pushing to a higher high on the daily timeframe, and all eyes are now on where the pullback lands. The recent peak came in slightly above what many were expecting around the mid-$140s, which means the next low could also form higher than the last one. That would keep the overall trend structure intact while the market works through the recent rally.

⬤ Price is currently sliding toward a well-defined demand area that’s getting a lot of attention. This zone sits around $128 and lines up with both a bullish fair value gap and the 0.618 Fibonacci retracement level. When multiple technical markers converge like this, it often becomes a make-or-break spot where traders watch closely to see how price responds.

The local top formed slightly higher than initially expected, which also implies that the next corrective low could develop above the previous one.

⬤ The key thing here is structure. The previous swing low is sitting well below current levels, suggesting this pullback is just a normal retracement rather than something more serious. But there’s a catch—if SOL closes below that $128 support zone, the whole setup breaks down and the bullish case weakens significantly.

⬤ What happens next with Solana matters beyond just SOL itself. How it handles this test after setting a higher high could set the tone for broader altcoin sentiment in the short term. If the fair value gap holds and price forms that higher low, it reinforces the strength of the recent move. If it doesn’t, traders will be reassessing whether the momentum can continue.