Solana has recently demonstrated a bearish trend, dropping 3% over the last 24 hours to trade at $144.78. This decline is part of a broader pattern of consolidation and retracement within defined technical levels, despite significant developments in the ecosystem such as a $12 million funding round led by Polychain Capital for Solayer. This initiative, aimed at enhancing the scalability and transaction capacity of the Solana blockchain, has yet to reflect positively on its market price.
Solana Dips Below Key Support Levels Amid Bearish Market Trends
The daily trading chart for Solana reveals that the cryptocurrency has entered a consolidation phase since mid-August, trading between a resistance at $148.61 and a support level at $137.42. A temporary breakout pushed SOL towards $162 before retracting to the lower support level at $143, forming a rounding top pattern indicating a bearish momentum as bears look to exert more downward pressure.
Solana is trading below both the 50-day and 200-day SMAs, an indication that reinforces the bearish trend over both medium and long-term periods. The RSI is approaching the 30-oversold territory, suggesting that the asset is under significant selling pressure. This might also signal a potential reversal point if bulls decide to re-enter the market at these lower levels.
The RSI’s dip toward the oversold territory might attract bullish attention, signaling a possible reversal if the bulls decide to capitalize on the perceived undervaluation of SOL. If the market sentiment shifts and buying pressure increases, there is a potential for SOL to rebound towards the $160 mark.
The immediate future for Solana appears to hinge on its ability to maintain support above $137.42. A failure to hold this level could see Solana’s price testing further support around $130.
If the market manages to respond to the stressed zones, there might be a chance of recovery. A considerable amount of capital may enable Solana to recover to the $160 zone and even higher if it manages to surpass some interim resistances that will emerge at 162. If the bears remain strong, more so, if the overall market remains bleak more risk is posed to Solana and it may breach the support at 137.42 to move towards 130 and possibly further south if such bearish pressure increases.
SOL Market Sentiment and External Influences
Market sentiment in the more global context appears to be more on the prudent side as is apparent in the lower volume of trades and also bearish indicators. Meanwhile, some prominent analysts, such as Curb on X, have pointed out the long-term range that has formed between $160 and $192. Curb argues that if this range breaks, there is a lot of upside potential for the price of Solana, i.e. reaching addresses in the range of $400-$500, with the potential to rise even further and touching $800-$1000, within a little longer time frame.
The present market price trend of Solana has both positive aspects as well as negative aspects. Traders must pay very close attention to certain important resistance and support areas, considering external factors that include trends in the expansion of the blockchain ecosystem and the level of institutional interest. There is still room for volatility, and those people who participate in the market should take into consideration the economic environment and mood of the market for their trades.
