Solana, a leading blockchain platform, is experiencing a significant downturn as a persistent bearish wave sweeps through its market. This decline, driven by a combination of factors, has led to SOL’s price suffering a huge drop below the $140 support mark. Solana’s price has struggled to find stability, breaking through key support levels and signaling further potential losses. As bearish sentiment continues to dominate, traders and investors are closely monitoring the situation, seeking 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 SOL is beginning to decline again after a failed attempt to move upward. It should also be noted here that the digital asset is still actively bearish trading 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 signal line of the RSI indicator is attempting a reversal below 50% dropping toward the oversold. From the 1-day chart based on the current price movement, it can be observed 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 attempting to start moving downward by dropping a rejection candlestick. Also, the RSI indicator reveals that SOL’s price may likely decline further as the RSI line is actively trending below 50% heading toward the oversold zone. It is worth noting that from the analysis and technical indicators on both the 4-hour and 1-day chart, it can be suggested that the price of SOL may extend its decline for a while. Potential Scenarios For SOL’s Price Movement Presently, Solana has broken below the $140 mark and is attempting a downward move toward the $118 support level. If SOL’s price breaks this level, it will continue to move down to test the $99 support level and may probably move on to test other lows if it breaches below this $99 level. However, if it fails to move downward as predicted and breaks above the $140 mark, it will start a move toward the $160 resistance level. Should it break above this resistance level, it will continue to move upward to test the $188 resistance level. Furthermore, Solana may witness a higher climb to test the $205 resistance level on the chart if it breaks the above support level and possibly heads on to create a new high. The price of SOL has decreased by 0.57%, trading at about $133 in the last 24 hours, with a market capitalization of more than $61 billion and a trading volume of more than $1.9 billion as of the time of writing. There has been a 12.94% increase in market capitalization in the last day despite the trading volume being down by 9.84%. Featured image from Adobe Stock, chart from Tradingview.com
