- Solana’s price has seen a decline of over 5% in the last 24 hours, with some metrics hinting at a possible trend reversal.
- The crypto token is fast approaching a crucial support level of $142, which could determine its future trajectory.
- While some indicators suggest a bearish sentiment, others like the MACD and Chaikin Money Flow hint at a possible price increase.
As Solana’s price dips, it approaches a critical support level. The token’s future trajectory could be determined by whether it rebounds or plummets further.
Solana’s Price Decline
Over the last 24 hours, Solana [SOL] has seen a price decline of more than 5%. This bearish market condition has pushed most crypto prices down, and SOL is no exception. The token’s price dip has caused its Weighted Sentiment to decrease, indicating a dominant bearish sentiment in the market. Additionally, SOL’s Social Volume has also declined, suggesting a decrease in the token’s popularity in the crypto market.
Approaching a Crucial Support Level
According to CoinMarketCap, SOL is currently trading at $144.80 with a market capitalization of over $64 billion, making it the fifth-largest cryptocurrency. The token is fast approaching a crucial support level of $142. If SOL manages to test this support, investors can expect a rebound. However, a drop under this level could be disastrous for the token’s price.
Possible Trend Reversal
Data from Santiment shows that SOL’s Open Interest has dropped along with its price. This sinking metric suggests that the chances of the ongoing price trend continuing are low, hinting at a possible trend reversal. However, SOL’s Funding Rate is high, which could be concerning for the token’s price action. Furthermore, Solana’s Long Short Ratio has declined, indicating a bearish advantage in the market.
Indicators of a Possible Price Increase
Despite the bearish indicators, some metrics suggest a possible price increase. For instance, the MACD displays a bullish upperhand in the market. Additionally, after a sharp decline, Solana’s Chaikin Money Flow (CMF) has registered an uptick. If SOL manages to test its support near $142, then investors might witness SOL once again approach its resistance near $160. However, if SOL fails to test the support, then its price could plummet to its next support, near $120-$125, within days.
Conclusion
The future trajectory of Solana’s price could be determined by whether it manages to test the crucial support level of $142. While some indicators suggest a bearish sentiment, others hint at a possible price increase. Investors should keep a close eye on these metrics to make informed decisions.
