As Bitcoin takes a drop under $57K, the bearish trend in the altcoins market is heating up. Amid the selling spree, the downfall in SOL price breaks under the $130 mark and restarts the eight-day bearish trend after a minor 4.98% recovery on Monday.
With the falling trend picking up pace, Solana adds massive pressure over the $120 support zone. Will this bear cycle result in a massive fall to the $100 milestone?
Solana Price Performance
With a 19.14% drop last week, the price for the downtrend continues for Solana this week, with a 5.47% fall last night and breaking below the $130 mark. Further, the recent double-top reversal breaks the neckline at $138 near the 200-day EMA, and the SOL price tests the bottom support zone at $121.
The demand zone at $121 has provided multiple bounce-backs for Solana since the start of 2024. However, the recent double-top reversal warns of a breakdown rally.
Currently, the SOL price is trading at $127 with a Doji intraday candle following the bearish engulfing candle last night. With the long-tail formation, the underlying demand can result in a new bull cycle.
Technical Indicators:
EMA: The declining trend in the 50-day EMA warns of a death cross with the 200-day EMA. This will mark a significant bearish signal over the Solana chart.
RSI: The daily RSI line shows a minor bullish divergence compared to the last bottom formation. This suggests the possibility of a minor SOL price recovery to challenge the 200-day EMA, which stands at $140.
With a massive drop in the total fees, the network activity has dropped notably over Solana. From the $1.83M in early August, the Total Fees are now under $600K at $578K. The decline is visible in the weekly breakdown, reflecting a massive plunge in the Non-vote Fee.
Further, the Non-vote transactions on Solana (Monthly) dropped under 500K, revealing the network’s weakening and decreasing the demand for SOL tokens. If the network continues to witness weak numbers, the SOL price could struggle at the $120 mark.
Will The SOL Price Crash Under $120?
In case of a bearish breakdown, the neck support level is at the $110 low and the $100 psychological mark. However, a broader market impact can result in a new low formation at the $85-$80 demand zone.
On the flip side, based on the Fibonacci levels, a double-bottom reversal from $120 can find resistance at the 23.60% level at $140. A move above $140 can hint at an extended recovery for Solana.
Read our Solana (SOL) Price Prediction for an overview of long-term targets!
