Solana (SOL) price analysis indicates bearish sentiment as the crypto struggles to stand firm amid a wider market correction. Solana had a hard time in the previous 24 hours with prices falling by 8% to trade at $136.47 during early morning EST. This fall came on the tail of an upsurge in trading activities which could be attributed to VanEck’s spot ETF for Solana plan.
Technical Indicators Point to Continued Struggles
The technical landscape of Solana currently leans bearish. The price is consolidating within a descending parallel channel signaling a continuation of the downtrend unless otherwise. Although this channel’s centerline has been acting as temporary support, more selling pressure shows the sustainability of this line.
Solana Relative Strength Index (RSI) is below the median line reading 34.83 indicating that it might go into oversold territory soon. Moving Average Convergence Divergence (MACD) too is below its signal line further demonstrating negative short-term momentum turn-around. These indicators imply a possible further decline in Solana’s price unless there is a significant shift in market emotion or external impacts.
Market Context and External Influences
In 24 hours, more than $90bn was wiped from total capitalization across all cryptocurrencies in what can only be described as a flash crash across all market segments such as Bitcoin leading from the front with significant losses hence putting pressure on negative sentiments towards Silvana tokens’ prices among others However, speculation around potential VanEck’s application for Solana ETF buoyed some trades however this was overshadowed by regulatory uncertainty and how United States elections could affect policies going forward.
Further ahead, it appears that SOL’s immediate future hinges on the $130.79 level if the current trend persists becoming another critical support level if there is any breach below that might open lower supports at $120 should it manage to stabilize and break out upside the center line of the channel, there is an opportunity for a recovery back to $155.89 which will invalidate the present bearish settings.
However, this market needs more than just a technical rebound; regulatory factors related to ETF, Bitcoin’s movement on the market as well as general investor psychology are all important. So if anything positive occurs particularly with regards to ETFs then there could be enough buying power to take Solana prices above these levels again.
