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.
Source: TradingView
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.
Source: TradingView
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.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Â
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News