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Solana is falling again, below the $137 support level, indicating that bearish momentum is building traction. The once promising uptrend has failed, leaving traders and investors left reeling investors I wonder if there are more losses ahead. With selling pressure increasing, the question now is whether Solana can gain a new foothold or whether the bears will continue to lower the price.
In this analysis, we provide an in-depth analysis of Solana’s recent collapse below this key support level, examining the growing bearish momentum and most important levels to watch and what could happen next for Solana.
At the time of writing, Solana was trading at around $131, reflecting a decline of 4.67% with a market cap of over $16 billion and a trading volume of over $1.6 billion. The past 24 hours have had SOLs market The cap has fallen by 4.65%, while trading volume has increased by 92.92%.
How low can Solana fall?
The 4-hour chart shows Solana (SOL) has shown a clear shift in momentum to the bearish side as it decisively breaks below the critical $137 level along with the 100-day Simple Moving Average (SMA). This breakdown reflects a weakening technical situation, with sellers gaining the upper hand and pushing SOL towards the $118 support zone. In particular, the breakout of the 100-day SMA, a widely watched indicator of the overall market trend, suggests that negative momentum is not only increasing but could also indicate a prolonged downward move.
Furthermore, the Relative Strength Index (RSI) on the 4-hour chart has fallen below the 50% threshold and now stands at 35%. With the RSI attempting to move deeper into oversold territory, it shows that the bears are gaining control, and more downside could be on the horizon if buying interest doesn’t pick up again soon.
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On the daily chart, Solana is showing a substantial pessimistic move. It has fallen below the 100-day Simple Moving Average and is forming multiple bearish candlesticks as the price moves towards the $118 level. This steady decline underlines strong selling pressure and deteriorating market sentiment, indicating an increased risk of further losses. The continued downward trend momentum indicates that the bears are firmly in control, with SOL possibly facing even deeper corrections in the near term.
Finally, the 1-day RSI indicates that bearish pressure on SOL is increasing as the indicator has recently fallen to 43% after failing to break above 50%, highlighting increased selling pressure and a growing downside signal for the stock. cryptocurrency.
Potential support zones to watch for a rebound
As SOL navigates its current bearish trend, key support zones to watch include $118, which serves as a significant psychological and technical level at which strong defense could indicate a potential reversal or consolidation. If $118 does not hold, $99 could provide additional support, acting as a historical pivot point and possible basis for recovery.
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Should Solana recover at any of these support levels, the price could start to rise towards the $137 resistance line. A successful breakout up there resistance could signal a shift towards a optimistic trend, potentially leading to further gains as SOL targets higher resistance levels.
Featured image from Unsplash, chart from Tradingview.com