Solana Plummets: Is a Rebound Possible or Are Further Declines Imminent?
Solana (SOL) has recently faced a significant price setback, failing to sustain momentum above the crucial $102 mark and extending its losses. Currently consolidating below $95, the cryptocurrency is at a pivotal juncture, with market participants eagerly watching whether it can initiate a recovery or succumb to further bearish pressure, potentially pushing its value even lower towards the $80 range.
Solana's Bearish Descent Deepens
Following its inability to stabilize above the $105 level, Solana began a notable decline, mirroring movements seen in other major cryptocurrencies like Bitcoin and Ethereum. This downturn saw SOL breach the significant $100 and $95 support zones, ultimately forming a new low around $89. The asset is now trading firmly below the $100 threshold and its 100-hourly simple moving average, signaling strong bearish sentiment. A critical bearish trend line with resistance near $98 on the hourly chart further underscores the current selling pressure, as the price consolidates beneath the 23.6% Fibonacci retracement level of its recent downward swing from $106 to $89.
Critical Support and Resistance Levels
For Solana to reverse its trajectory, bulls must mount a defense, ideally holding the $90 or $85 support zones. On the upside, immediate resistance is noted near $93, followed by a more substantial barrier at the $97 level, which aligns with the 50% Fibonacci retracement. Overcoming the $98 bearish trend line resistance and securing a decisive close above the main resistance at $102 could ignite a steady recovery wave, potentially propelling SOL towards $106 and subsequently $112. However, should Solana fail to overcome the $98 resistance, it faces the risk of continued downside. Key support levels to watch include $90, then $85, and a break below $85 could see the price drop towards the $82 zone. A persistent move below $82 might even lead to a decline to the $74 support level in the near term. Technical indicators, such as the Hourly MACD, are gaining pace in bearish territory, and the Hourly Relative Strength Index (RSI) remains below the 50 level, reinforcing the prevailing bearish outlook.
