Solana started another decline, falling below the $137 support level, signaling that bearish momentum is gaining. traction. The once promising uptrend has faltered, leaving traders and investors wondering if more losses are on the horizon. As selling pressure intensifies, the question now is whether Solana will be able to find a new foothold or if the bears will continue to push its price lower.
In this analysis, we will provide an in-depth look at Solana’s recent breakdown below this key support level, examining the growing bearish momentum and exploring the main levels watch and what might come next for Solana.
At the time of writing, Solana was trading at approximately $131, reflecting a decline of 4.67%, with a market cap of over $16 billion and a trading volume of over $1.6 billion. In the last 24 hours, SOL market the limit fell by 4.65%, while the turnover increased by 92.92%.
How low can Solana fall?
On the 4-hour chart, Solana Solana Corp. (SOL) has shown a clear shift in momentum towards the bearish side as it decisively broke below the critical $137 level along with the 100-day simple moving average (SMA). This breakdown reflects a weakening technical setup, with sellers gaining the upper hand and pushing SOL towards the $118 support zone. In particular, the breach of the 100-day SMA, a widely watched indicator of the overall market trend, suggests that the downside momentum is not only building but could also signal an extended downward move.
Furthermore, the Relative Strength Index (RSI) on the 4-hour chart has dipped below the 50% threshold, now sitting at 35%. With the RSI attempting to delve deeper into the oversold territory, it shows that the bears are gaining control, and more downside could be on the horizon if buying interest does not pick up soon.
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On the daily chart, Solana is exhibiting substantial bearish movement, having fallen below the 100-day simple moving average and forming several bearish candlesticks as it moves towards the $118 level. This steady decline underscores strong selling pressure and deteriorating market sentiment, signaling an increased risk of further losses. The persistent decline impulse indicates that the bears are firmly in control, with SOL potentially facing even deeper corrections in the near term.
Finally, the 1-day RSI indicates that bearish pressure on SOL is intensifying, as the indicator recently dropped to 43% after failing to climb above the 50% mark, highlighting increasing selling pressure and a growing negative signal for the cryptocurrency.
Potential support zones to watch for a recovery
As SOL navigates its current downtrend, key support zones to watch include $118, which serves as a significant psychological and technical level where a strong defense could indicate a potential reversal or consolidation. If $118 fails to hold, $99 could provide additional support, acting as a historical pivot point and possible basis for recovery.
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If Solana bounces off any of these support levels, the price could start to climb towards the $137 resistance mark. A successful breakout above this resistance could signal a shift to a optimistic trend, potentially leading to further gains as SOL targets higher resistance levels.
Featured image from Unsplash, chart from Tradingview.com
