Solana was nearing its support level at $142, and if it drops below this point, it might slide further to $120. In the last 24 hours, Solana’s price dropped by over 5%, indicating a potential trend reversal.
Like many other cryptocurrencies, Solana’s price was affected by the overall market downturn. This decline brought Solana to a crucial level that could significantly impact its future direction.
Bearish Trends in Solana (SOL) Market
The last 24 hours saw a notable dominance of bearish sentiment in the cryptocurrency market. According to CoinMarketCap, SOL experienced a decline of over 5% during this period.
At the time of reporting, SOL was trading at $144.80, holding a market capitalization exceeding $64 billion, positioning it as the fifth-largest cryptocurrency. However, the downward price movement led to a decrease in the token’s Weighted Sentiment.
Bearish sentiment prevailed in the SOL market, reflected in the declining Social Volume, suggesting a decrease in the token’s popularity among crypto enthusiasts.
SOL’s chart analysis indicated a rapid approach towards a critical support level at $142. If Solana manages to test this support, investors may anticipate a potential rebound. However, a drop below this level could lead to adverse consequences.
Analysis of Solana’s (SOL) Near-Term Outlook
In assessing Solana’s (SOL) near-term trajectory, Santiment’s data analysis offers valuable insights. Notably, SOL’s Open Interest exhibited a decline alongside its price movement. A decrease in this metric suggests diminished.
Despite this, SOL’s Funding Rate remained high, posing concerns for the token’s price action. Additionally, Solana’s Long Short Ratio decreased, indicating a bearish advantage prevailing in the market.
If these metrics hold true, SOL’s price could potentially drop below the $142 support level. The Relative Strength Index (RSI) also favored bears, showing a downward trend. However, there were some relieving indicators.
For instance, the Moving Average Convergence Divergence (MACD) displayed a bullish stance. Furthermore, after a significant decline, Solana’s Chaikin Money Flow (CMF) recorded an uptick, suggesting a possible price increase.
Should SOL test its support near $142, investors may witness a resurgence, with SOL potentially reapproaching its resistance level near $160. These indicators provide a nuanced perspective on SOL’s near-term trajectory, highlighting both potential risks and opportunities for investors.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.