Top Trader Issues Solana Warning: Break Below $117 Could Trigger ‘Slow Bleed’

• Solana (SOL) tests critical support near $117 (horizontal + 1.618 Fib level)
• Analyst Mags outlines bull case (bounce from $117) vs bear case (bleed below $117)
• SOL/BTC pair also tests key Fib support after trendline rejection

Solana (SOL) faces scrutiny after failing to hold above its 20-day Exponential Moving Average (EMA) near $133. This level now acts as key overhead resistance for the altcoin.

The SOL token currently sits near a crucial technical point. Crypto analyst “Mags” highlights two distinct possibilities ahead: a strong bounce towards new highs, or a slow price bleed toward lower support levels.

What are Mags’ Two Scenarios for SOL?

Mags noted on X (formerly Twitter) that SOL hit a new ATH earlier this cycle at $295, but proved unable to sustain momentum above it. He also pointed to a significant bearish divergence appearing on the weekly Relative Strength Index (RSI) around that time, suggesting weakening underlying strength prior to the recent pullback. 

As per Mags’ analysis, SOL now tests a key horizontal support level. This level, near $117, has reportedly held strong over the past year and aligns with the 1.618 Fibonacci retraceme…

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