Solana is currently grappling with significant support challenges, reflected in today’s trading price of $135.64, with a 24-hour volume reaching $1,966,386,647. The cryptocurrency has faced a downturn of 4.64% over the last day, part of a broader negative trend observed throughout April.This past week saw Solana’s price descend to a 10-day low of $133 on April 27, culminating in a weekly loss of 11.4%. Analysis via the Bollinger Band indicator highlights a potential further decline, suggesting the price might fall to as low as $125 if current trends persist.
On the daily chart, Solana’s performance is precarious as it tests the $135 support level. A major bullish trend line is evident on the weekly chart, offering support at this crucial point. If Solana fails to hold this level, the price is likely to drop further towards $130.
A continued decline could see Solana approaching the next major support at $110. Should the price break below this level, the following significant support is at $85, aligning with the 61.8% Fibonacci retracement of the ascent from $7.92 to $210. Falling under $85 could intensify sell-offs, pushing the price towards the $70 mark, close to the 50-week simple moving average.
Alternatively, if Solana remains above the trend line support, there could be a push upwards. The initial resistance lies near $145, with a stronger resistance at $162. Surpassing the $162 resistance could indicate a bullish momentum shift, potentially driving the price towards the $185 level. Success beyond this point might challenge the $200 resistance.
Solana Stumbles at Critical Support of $135.0 as Technical Indicators Signal Caution
In the latest market update on the 4-hour timeframe shows Solana’s valuation faces a stern test as it stumbles below the pivotal $140 support level, as observed on the 4-hour timeframe. Solana (SOL) has experienced a decline, with the current session trading below the Simple Moving Average (SMA) 9 close at $174.11. This downward action signals potential bearish sentiment among investors and traders.
A closer look at the technical analysis tools provides additional insights. The Awesome Oscillator (AO), known for gauging market momentum, reflects a series of red bars, pointing to increasing bearish momentum in recent sessions. Similarly, the Aroon Oscillator, with its value in the negative zone at -28.57, suggests that the downtrend has established control, with the Aroon Down (red) line dominating the Aroon Up (blue) line.
This market behavior occurs in the context of broader sell-offs and price corrections within the cryptocurrency space. With Solana currently testing the $136 mark, the cryptocurrency’s immediate trajectory appears to hinge on whether the bulls can muster enough strength to reclaim higher levels or if the bears will continue to push the price down, potentially towards the next support zones.
Market participants are witnessing the resistance levels, previously providing support, turn into barriers to any upward price recovery. The most recent attempt by bulls to regain ground near the $139.62 level was short-lived, indicating a resistance to upward movement. Should this resistance hold, it may prevent SOL from retesting higher price levels in the immediate future.
The current market sentiment towards Solana is one of caution. Notable developments such as Stripe’s adoption of USDC payments through Solana and the Colosseum project’s updates from the Renaissance Hackathon offer a mixed impact on investor sentiment, influencing market dynamics amidst uncertain conditions.
Solana is at a critical point, with the $135 support level under scrutiny. A break below could lead to significant declines to $110 or lower. Conversely, maintaining above this level might initiate a recovery effort targeting higher resistance levels.
