As SOL approaches support at $130, will Solana’s price rebound?
Like the rest of the market, Solana’s price has taken a hit today, with most of the top 100 tokens down more than 2.5%. However, there are signs of improvement.
SOL’s price fell 3.72% in the previous day and is currently trading at $131.71.
Following the lead of other large cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which have also seen a retracement, Solana also recorded a weekly loss of 11.13%.
Despite a 26.85% drop this month, Solana still achieved an impressive return of 691.41% for the year, significantly outperforming other top cryptocurrencies.
Trading activity was slightly changed, with the token’s 24-hour trading volume falling 1.50% to $2.13 billion.
Now that it has found support at a key level, Solana price is ready to bounce back.
Interestingly, Solana closed above the $129.75 support level (grey) after flirting with it at hourly lows. It seems that the downward trend has slowed and may even have stabilized.
This reduced selling pressure will be confirmed if Solana is able to move strongly upward from here. Support will hold, setting the stage for a possible upside move.
The currency’s purple relative strength index (RSI) jumped from 20 to 40 in the past hour, adding credence to this view. This could be a sign of a trend reversal or rising buying pressure.
However, BONK’s 30-day moving average (yellow) is heading in the wrong direction, below its 200-day moving average (blue), which is also falling. This suggests a negative trend in both the long-term and short-term.
Therefore, more pullbacks may be in the cards as the current stability may not be enough to support a broader trend reversal.
The prevailing market sentiment after the Fed’s inflation hawkish comments may be responsible for this price performance. Traders are filled with uncertainty after the bleak macroeconomic forecasts.