The Solana price is trading at $155 as of 12:30 am EST, down 3.2% over the last 24 hours.
The price of the smart contracts token is down 5% over the last seven days but remains bullish on the longer timeframes. It has rallied 120% over the last 90 days and 53% year-to-date.
The altcoin has been bolstered by airdrops and memecoin frenzy within its ecosystem.
At the time of publication, all the major tokens in the Solana ecosystem were recording losses as shown in the figure below. Top memecoins such as dogwifhat (WIF) and Bonk (BONK) were down 6% and 8% respectively, over the last 24 hours.
Top cryptocurrencies in the Solana ecosystem. Source: CoinMarketCap
Therefore, the bearish sentiment in the ecosystem is weighing down the price of the layer 1 token. How low can the SOL price go
Solana price is a risk of further losses
SOL price action has formed an inverted V-shaped pattern on the daily chart as shown below. The fifth placed cryptocurrency was sitting on immediate support from the $155 psychological level. A daily candlestick close below this level would see the price drop first to $140.
Breaching this level would see sellers pull SOL lower, collecting the demand side liquidity below that to complete the V-shaped pattern at $120.. Such a move would represent a 21% decline from the current price.
SOL/USD daily chart. Source: TradingView
This grim outlook was supported by the downward-facing Relative Strength Index (RSI). The price strength at 42 suggested that the bears fully controlled SOL.
The “Ethereum killer” was also facing stiff resistance in its recovery path. If the SOL price were to rise from its current level, it would meet the first roadblock around the $156 supply zone, embraced by the 50-day simple moving average (SMA) and later the $162 to $170 supplier congestion area, embraced by the 100-day SMA.
An additional psychological barrier lies at $180. Rising higher would bring the $190 swing high into the picture.
