Solana (SOL) Breakdown Accelerates At $90, $80 Suddenly Looks Vulnerable

Overview

Solana (SOL) has faced significant downward pressure, struggling to maintain stability above critical price levels. Following a failure to settle above $102, the cryptocurrency has experienced a decline, leading to concerns about further losses as it consolidates below $95.

Recent Price Movements

In recent trading sessions, Solana’s price has dropped below several significant support levels, including $100 and $95. This decline follows a broader trend observed in other cryptocurrencies, such as Bitcoin and Ethereum, which have also faced bearish momentum. Currently, SOL is trading below the 100-hourly simple moving average, indicating a prevailing negative trend.

A key bearish trend line has formed, presenting resistance near the $98 level on the hourly chart of the SOL/USD pair. The price has struggled to recover, particularly as it failed to stabilize above $105 earlier. A notable low was recorded at $89, and now the price is consolidating losses below the 23.6% Fibonacci retracement level of the recent downward move from a swing high of $106 to the low of $89.

Market participants are watching for immediate resistance at around $93, while the next significant resistance levels are identified at $97 and $102. A successful close above the $102 resistance zone could potentially set the stage for a more sustained recovery. Conversely, if the price continues to struggle against the $98 resistance, further declines may be imminent.

Possible Support Levels

Current analysis indicates that the initial support level is near $90, with the first major support identified at $85. Should the price fall below $85, it may further decline toward the $82 support zone. A close beneath $82 could lead to a more significant downturn, potentially targeting the $74 support level in the near term.

Technical Indicators

The technical indicators reflect a bearish sentiment in the market. The hourly MACD is gaining momentum within the bearish zone, highlighting the ongoing negative trend. Additionally, the Relative Strength Index (RSI) for SOL/USD is currently below the 50 level, reinforcing the bearish outlook.

From author

The current state of Solana’s price action underscores the challenges faced by the cryptocurrency in maintaining upward momentum. With resistance levels firmly established and bearish indicators in play, market participants must remain vigilant. The potential for further declines looms large if the price fails to hold above critical support levels.

Impact on the crypto market

• The decline in Solana’s price reflects broader bearish trends in the cryptocurrency market, affecting investor sentiment.
• Resistance levels at $98 and $102 will be crucial for determining short-term recovery potential.
• Continued losses for Solana could prompt further selling pressure across the market, impacting other cryptocurrencies.
• Support levels at $90 and $85 will be critical in assessing Solana’s near-term price stability.
• A break below established support could lead to increased volatility, influencing market dynamics for other digital assets.