Solana, a leading blockchain platform, is experiencing a significant slowdown as a persistent bearish wave sweeps its market. This decline, driven by a combination of factors, caused SOL price to take a huge plunge below the $140 support mark.
Solana price has struggled to find stability, breaking key support levels and signaling further potential losses. As bearish sentiment continues to dominate, traders and investors are closely monitoring the situation, looking for signs of a possible reversal or additional declines in the near future.
Technical Indicators Signal Further Losses for Solana
On the 4-hour chart, the price of SUN is starting to decline again after a failed attempt to climb. It should also be noted here that the digital asset is still actively trading lower below the 100-day simple moving average (SMA).
The 4-hour Relative Strength Index (RSI) also suggests that Solana may be poised for a further decline as the RSI indicator signal line is attempting a reversal below 50%, falling towards oversold.
On the 1-day chart based on current price movement, it can be seen that SOL is still actively bearish as it is still trading below the 100-day SMA. It can also be noticed here that it is trying to start moving downwards, knocking down a rejection candle.
Furthermore, the RSI indicator reveals that SOL Price may likely fall further as the RSI line is actively trending below 50% towards the oversold zone. It is important to note that from the analysis and technical indicators on the 4-hour and 1-day chart, it can be suggested that the SOL price may prolong its decline for a while.
Potential scenarios for SOL price movement
Currently, Solana has broken below the $140 mark and is attempting a downward move towards the $118 support level. If SOL price breaks this level, it will continue to fall to test the $118 support level. 99 and could probably move on to test other lows if it breaks this $99 level.
However, if it fails to move down as predicted and surpasses the $140 mark, it will begin a move towards the $160 resistance level. resistance levelwill continue to rise to test the $188 resistance level. Furthermore, Solana may witness a rally higher to test the $205 resistance level on the chart if it breaks the support level above and possibly creates a new high.
SOL price decreased by 0.57%, trading at around $133 in the last 24 hours, with a market capitalization of over $61 billion and a trading volume of over $1.9 billion on the time this article was written. There was a 12.94% increase in market capitalization in the last day despite trading volume falling by 9.84%.