Market Alert: Solana Faces Critical Support Test
Solana (SOL) appears to be on the verge of a significant price correction, with leading analysts forecasting a potential 26% crash to $90. This bearish outlook comes amid increasing market uncertainty and follows recent predictions of deeper price declines for the popular Layer-1 blockchain.
Technical Analysis Points to Continued Downtrend
According to TradingView analyst MadWhale, SOL’s price structure has formed a clear Descending Channel pattern, characterized by:
- Consistent lower highs and lower lows
- Strong resistance above $130
- Psychological support at $100
- Critical monthly support at $90
The technical setup suggests that Solana’s recent price action is part of a broader downtrend that could accelerate if key support levels fail to hold.
Market Sentiment Reaches Critical Levels
The Fear and Greed Index for Solana has plummeted to 34, approaching extreme fear territory. This significant shift in market sentiment is supported by several key indicators:
- One-year low in market sentiment readings
- Increased volatility in on-chain metrics
- Growing potential for panic-driven sell-offs
- Bearish divergence in trading volumes
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Smart Money vs. Retail Sentiment
Despite the overwhelmingly bearish retail sentiment, institutional investors (‘smart money’) maintain a cautiously optimistic outlook. Market Prophit’s analysis suggests that this divergence between retail and institutional positioning could signal a potential trend reversal in the medium term.
Key Price Levels to Watch
Traders should monitor these critical price levels:
- Immediate Resistance: $130
- Psychological Support: $100
- Major Support: $90
- Previous Low: $85
Market Implications and Trading Strategy
For traders and investors, the current market structure suggests maintaining a cautious approach. While short-term bounces may occur, the overall trend remains bearish until SOL can establish a clear bottom and show signs of accumulation at lower levels.
Source: Newsbtc