Solana (SOL) faces mounting pressure as bears push the price toward a crucial support level at $164. The cryptocurrency’s recent price action suggests a deepening correction phase that could determine its short-term trajectory.
Technical Analysis Points to Continued Weakness
SOL’s price has fallen below the 100-day Simple Moving Average (SMA). This technical breakdown signals strong bearish control. The Relative Strength Index (RSI) reading of 25% puts SOL in oversold territory.
Key technical levels to watch:
- Critical support: $164
- Secondary support zones: $137 and $118
- Major resistance levels: $240 and $260
Market Implications
The current price action creates two possible scenarios. A breakdown below $164 could trigger a cascade to $137 or even $118. However, this oversold condition might attract buyers looking for value entries.
If bulls defend the $164 support, SOL could stage a relief rally. The oversold RSI supports this possibility. Traders should watch for increased buying volume as a confirmation signal.
Advertisement
Trade Solana with up to 100x leverage on DeFX. Experience lightning-fast execution on Solana’s fastest DEX.
Long-term Outlook
Despite current weakness, Solana’s ecosystem continues to grow. The network maintains strong fundamentals with increasing developer activity and DeFi implementations.
Institutional interest in Solana remains significant. This could provide support during market corrections. Long-term investors might view current prices as accumulation opportunities.
Tags: Solana, SOL Price Analysis, Cryptocurrency Trading, Technical Analysis, Market Trends
Source: NewsBTC