Solana, a leading blockchain platform, is experiencing a significant downturn as a sustained wave of declines sweeps through its market. This decline, caused by a combination of factors, led to a massive drop in the SOL price below the $140 support level.
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 traders are closely monitoring the situation 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, SOL price starts to fall again after failing to move up. It is also crucial to note that the digital asset continues to show an energetic decline below the 100-day basic moving average (SMA).
The 4-hour Relative Strength Index (RSI) also suggests that Solana may be poised for further decline as the RSI indicator’s signal line tries to reverse below 50%, falling towards oversold.
On the 1-day chart based on the current price movement, you can see that SOL is still actively trending down as it continues to trade below the 100-day SMA. You can also see here that he is trying to start a move down by dropping the rejection candle.
Additionally, the RSI indicator shows that SOL price is likely to decline further as the RSI line continues to trend below 50%, heading towards the oversold zone. It is worth noting that the analysis and technical indicators on both the 4-hour and 1-day chart suggest that the SOL price may extend its decline for some time.
Potential scenarios for SOL price changes
Currently, Solana has broken below the $140 level and is trying to head down towards the $118 support level. If SOL price breaks this level, it will continue to fall to test the $99 support level and could possibly move on to test other lows if it breaks below the $99 level.
However, if it fails to move down as expected and breaks above the $140 mark, it will start moving towards the $160 resistance level. If it breaks above this resistance level, it will continue to move higher, testing the resistance level at $188. Moreover, Solana could witness a higher climb to test the $205 resistance level on the chart if it breaks the above support level and perhaps creates a up-to-date high.
SOL is down 0.57% to trade at around $133 in the last 24 hours, with a market capitalization of over $61 billion and trading volume of over $1.9 billion at the time of writing. Market capitalization increased by 12.94% on the last day, despite a 9.84% drop in trading volume.
