Solana at a Crossroads: Can It Hold $120 Amidst Growing Bearish Pressure?
Solana (SOL) recently experienced a significant downturn, failing to maintain its position above the $132 mark and initiating a fresh decline. The cryptocurrency is now consolidating its losses below $130, with analysts closely watching key support levels as fears of a further drop below $120 loom.
Solana's Recent Price Action and Bearish Momentum
After struggling to hold above $132, Solana's price began a sharp descent, mirroring trends seen in other major cryptocurrencies. Currently, SOL is trading distinctly below $128 and its 100-hourly simple moving average, indicating a strong bearish sentiment. A critical bearish trend line has emerged on the hourly chart, establishing significant resistance around $131, which presents a formidable barrier to any immediate upward movement. The recent low was established at $121, and while a slight rebound occurred, it only briefly tested the 23.6% Fibonacci retracement level of the latest downward swing from $134 to $121.
Key Levels for Future Movements
On the upside, Solana faces immediate resistance near $125, followed by a more substantial hurdle at $128. This $128 level is particularly crucial as it aligns with the 50% Fibonacci retracement of the recent decline. Should SOL manage to break and close above the $132 resistance zone, it could signal a potential recovery, paving the way for a climb towards $140 and possibly $145. Conversely, if the bears remain dominant and the price fails to surmount the $128 resistance, the downward trajectory is likely to continue. Initial support on the downside lies at $122, with a critical major support level at $120. A definitive break below $120 could precipitate further losses, potentially pushing Solana towards $112 and even $105 in the near term.
Technical Indicators Point to Continued Weakness
Further reinforcing the bearish outlook, key technical indicators reveal sustained downward pressure. The hourly Moving Average Convergence Divergence (MACD) for the SOL/USD pair is currently gaining pace within the bearish zone, suggesting increasing selling momentum. Similarly, the Hourly Relative Strength Index (RSI) is positioned below the 50 level, indicating that the asset is currently experiencing more selling pressure than buying interest. Traders and investors are advised to monitor these critical support and resistance levels closely, as they will dictate Solana's short-term price direction.
