Market Alert: Solana’s Sharp Decline Signals Broader Market Weakness
In a dramatic turn of events, Solana (SOL) has plummeted over 15% in the last 24 hours, marking one of its most significant daily declines of 2025. The sharp downturn, which began at the $162 level, has sent shockwaves through the crypto market, with SOL notably underperforming major cryptocurrencies during this correction phase.
Technical Breakdown: Key Support and Resistance Levels
The technical analysis reveals several critical price points:
- Current trading price: Below $145
- Key resistance levels: $144, $150, and $152
- Major support zones: $136 and $131
- 100-hourly SMA: Currently acting as overhead resistance
Market Structure Analysis
The formation of a bearish trend line at $144 suggests continued downward pressure. The price action has established a clear pattern of lower highs and lower lows, with the recent swing low at $131 representing a crucial support level that bulls must defend to prevent further deterioration.
Recovery Scenarios and Risk Factors
For a meaningful recovery, SOL needs to:
- Break above the immediate resistance at $144
- Clear the psychological barrier at $150
- Establish support above the 50% Fibonacci retracement level
However, failure to maintain the $136 support could trigger a cascade of selling, potentially pushing prices toward the $120 region.
Expert Analysis
According to crypto analyst Sarah Chen from Digital Assets Research: “The current price action in Solana suggests a potential oversold condition, but the broader market sentiment remains cautious. The $131 support level is crucial – a break below could trigger another wave of selling.”
Market Implications
The technical indicators paint a bearish picture:
- MACD: Showing weakening momentum in the bearish zone
- RSI: Trading below 50, indicating bearish control
- Moving Averages: Price trading below key EMAs
Looking Ahead
While the immediate outlook appears bearish, the $131-136 support zone could provide a foundation for a potential recovery. Traders should watch for increased volume and positive momentum divergences as potential signs of trend reversal.
Source: NewsBTC