Market Alert: Solana’s Downward Spiral Threatens Key Support Levels
Solana (SOL) has entered a critical phase as bears take control of the market, pushing the price below multiple support levels and threatening a further decline toward $120. The recent price action mirrors broader market uncertainty, as Bitcoin also faces significant pressure ahead of key market events.
Technical Breakdown: SOL’s Bearish Pattern Emerges
Key developments in SOL’s price action include:
- Sharp decline below critical $165 and $150 support zones
- Break of short-term rising channel at $144
- Price trading below 100-hourly simple moving average
- Formation of new support at $132 after recent low
Critical Price Levels to Watch
Resistance Levels:
- Primary resistance: $145
- Secondary resistance: $148
- Major barrier: $155
Support Levels:
- Immediate support: $136
- Critical support: $132
- Last defense: $125
Market Implications and Trading Outlook
Technical indicators paint a bearish picture for SOL:
- MACD showing weakening momentum in bearish territory
- RSI below 50, indicating sustained selling pressure
- Price action suggesting potential for further downside
Recovery Scenarios and Risk Assessment
For bulls to regain control, SOL needs to:
- Break above $155 resistance zone
- Maintain support above $132
- Show increased trading volume and positive momentum
Failure to hold these levels could trigger a cascade of selling pressure, potentially pushing SOL toward the psychological $120 support level.
Expert Analysis
According to crypto analyst Sarah Chen: “SOL’s current price action suggests a period of consolidation is needed before any significant recovery can take place. The $132 support level is crucial for maintaining bullish momentum.”
Market strategist Michael Rodriguez adds: “The technical setup indicates potential for further downside, but long-term fundamentals remain strong. Traders should watch for a daily close above $155 as a potential reversal signal.”
Looking Ahead
While short-term pressure remains bearish, Solana’s ecosystem growth and technical developments could provide support for future price recovery. Traders should maintain strict risk management and watch for key technical levels in the coming days.
Source: NewsBTC