Solana, a leading blockchain platform, is witnessing a major decline as a sustained bearish wave sweeps its market. This decline, driven by a combination of factors, saw the price of SOL fall significantly below the $140 support level.
Solana price struggled to find stability, as it broke through key support levels and indicated further potential losses. As bearish sentiment continues to prevail, traders and investors are closely monitoring the situation, looking for signs of a potential reversal or additional declines in the near future.
Technical indicators point to further losses for Solana
On the 4-hour chart, SOL price starts to decline again after its failed attempt to move higher. It should also be noted here that the digital asset is still actively trading bearish below its 100-day simple moving average (SMA).
The 4-hour Relative Strength Index (RSI) also indicates that Solana may be ready for further decline as the RSI signal line attempts to reverse below the 50% level, falling towards the oversold zone.
From the 1-day chart based on the current price action, it can be seen that SOL is still actively bearish as it is still trading below the 100-day simple moving average. It can also be seen here that it is trying to start moving downwards by dropping the rejection candle.
Also, the Relative Strength Index (RSI) reveals that the SOL price may likely fall further as the RSI line is actively trending below 50% heading towards the oversold zone. It should be noted that through the analysis and technical indicators on the 4-hour and 1-day charts, it can be indicated that SOL price may extend its decline for a period of time.
Possible scenarios for SOL price movement
Currently, Solana has broken below the $140 level and is trying to move lower towards the $118 support level. If SOL price breaks this level, it will continue moving down to test the $99 support level and possibly move to test other lower levels if it breaks below the $99 level.
However, if it fails to move down as expected and crosses the $140 level, it will start moving towards the $160 resistance level. If it breaks above this resistance level, it will continue to move upwards to test the $188 resistance level. Moreover, Solana may see a higher rise to test the $205 resistance level on the chart if it breaks above the support level and may be heading to create a new high.
The price of SOL fell 0.57%, trading at around $133 over the past 24 hours, with a market capitalization of over $61 billion and trading volume of over $1.9 billion as of writing. There was a 12.94% increase in market capitalization in the last day despite a 9.84% decrease in trading volume.
