- Solana, a prominent blockchain network, is undergoing a notable decline as a sustained bearish trend impacts its market.
- The descent, influenced by multiple factors, has caused SOL’s price to fall below the critical $140 support level.
- Traders and investors are closely scrutinizing the situation, looking for signs of either a reversal or further losses.
Discover the latest on Solana’s price movement, indicators pointing to future trends, and potential scenarios for traders and investors.
Technical Indicators Point to Further Decline for Solana
Solana’s price movement on the 4-hour chart has shown signs of continuous decline after an unsuccessful attempt to reverse the downward trend. Notably, SOL remains under bearish pressure, trading below the 100-day Simple Moving Average (SMA). Technical analysis suggests further declines could be imminent as key indicators provide bearish signals.
Key Technical Indicators
The 4-hour Relative Strength Index (RSI) indicates a potential for continued downside, with the signal line suggesting a reversal below the 50% mark and approaching oversold conditions. The 1-day chart similarly reflects bearish tendencies, with SOL trading beneath the 100-day SMA and showing a formation of rejection candlesticks. These patterns strongly suggest that Solana’s price may continue to face downward pressure.
Possible Price Movements for Solana (SOL)
Currently, Solana has dropped below the $140 threshold and appears to be eyeing further declines towards the next significant support level at $118. Should SOL breach this level, the next major support at $99 could be tested, potentially leading to even lower price points if bearish momentum persists.
Conversely, if Solana manages to reverse its current downtrend and surpass the $140 level, an upward movement towards the $160 resistance level could be on the horizon. Breaking past $160 might drive SOL’s price to test further resistance at $188 and possibly even challenge the $205 mark, creating new potential highs.
In the last 24 hours, Solana’s price has fallen by 0.57%, now trading around $133. Despite this, its market capitalization has increased by 12.94%, reaching over $61 billion, even as trading volume decreased by 9.84%, amounting to approximately $1.9 billion.
Conclusion
Solana’s ongoing bearish trend suggests that investors should remain vigilant, considering both the technical indicators and potential price movements. The immediate focus should be on the upcoming support and resistance levels, which will likely dictate the next phase of price action. While a further decline appears possible, any potential reversal above current resistance levels could open new prospects for SOL.
