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Solana started to decline again, falling below the $137 support level, indicating that the bearish momentum is gaining. The dragThe once promising uptrend has faltered, leaving traders and Investors Some are wondering if more losses are on the horizon. With selling pressure intensifying, the question now is whether Solana can find a new footing or whether the bears will continue to push its price lower.
In this analysis, we will provide an in-depth analysis of Solana’s recent breakdown below this key support level, examining the growing bearish momentum and exploring Main levels To watch and what could come next for Solana.
As of the time of writing, Solana’s stock price is trading at around $131, reflecting a 4.67% decline with a market cap of over $16 billion and a trading volume of over $1.6 billion. Over the past 24 hours, Solana’s stock price has been trading at $131. market Yamama Cement Company’s share price decreased by 4.65%, while trading volume increased by 92.92%.
How low can Solana go?
On the 4-hour chart, Solana SOL stock has shown a clear shift in momentum to the downside, decisively breaking the crucial $137 level alongside the 100-day simple moving average (SMA). This breakdown reflects a weak technical setup, with sellers gaining the upper hand and pushing SOL towards the $118 support area. In particular, the break of the 100-day simple moving average, a widely watched indicator of the overall market trend, suggests that not only is the negative momentum building but it could also signal a prolonged downward move.
The Relative Strength Index (RSI) on the 4-hour chart has also fallen below the 50% threshold, now sitting at 35%. With the RSI trying to move deeper into the oversold zone, this shows that the bears are gaining control, and further downside could be on the horizon if buying interest does not improve soon.
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On the daily chart, Solana is showing a significant bearish move, having slipped below the 100-day SMA and formed multiple bearish candles as it moved towards the $118 level. This continued decline confirms the strong selling pressure and deteriorating market sentiment, indicating an increased risk of further losses. batch This suggests that bears are firmly in control of the market, with SOL likely to face deeper corrections in the near term.
Finally, the 1-day RSI indicates that the downward pressure on SOL is increasing as the index recently dropped to 43% after failing to rise above the 50% mark, highlighting the increasing selling pressure and a growing bearish signal for the stock. Cryptocurrency.
Potential support areas to watch for recovery
With SOL currently heading downwards, key support areas to watch include $118, which acts as an important psychological and technical level where a strong defense could signal a potential reverse Or consolidation. If the $118 level fails to hold, the $99 level could provide additional support, acting as a historical pivot point and potential base for a recovery.
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If Solana stock bounces off any of these support levels, the price could start moving upwards towards the resistance level of $137. A successful breakout above this level could lead to an increase in the stock price. resistance May refer to a shift to rising The trend is up, which could lead to further gains as SOL targets higher resistance levels.
Featured image from Unsplash, chart from Tradingview.com