- Solana took a 5% hit, now trading around $161.
- A sharp $23.90M in liquidations has shaken the SOL market.
The brief bearish shift within the crypto market triggers the assets to retrace to their recent lows. With the fear and greed index value holding around 71, the overall sentiment is greed. Bitcoin trades near $103K, while Ethereum hovers around $2.4K. Meanwhile, Solana (SOL) has registered a solid loss of over 5.60% in the last 24 hours.
Solana can enter the recovery zone after testing its crucial resistance levels between the $175.38 and $184 range. The altcoin kicked off the day trading at a high of $176.49, and later, the mighty bears stepped in, pulling SOL toward the bottom of $159.65.
At the time of writing, Solana traded around the $161.79 level, with its market cap reaching $84.18 billion. Also, the daily trading volume has increased by over 129%, touching $5.26 billion. Furthermore, as per Coinglass data, the Solana market has witnessed a 24-hour liquidation of $23.90 million.
Can Solana Find Support Before Another Drop?
The technical indicators of Solana exhibit that the Moving Average Convergence Divergence (MACD) line and signal line have crossed below the zero line. This crossover likely signals the bearish momentum within the market, and the asset may experience more downside correction.
Additionally, the Chaikin Money Flow (CMF) indicator of the altcoin is found at -0.05, implying that the capital is flowing out of the asset, with mild selling pressure. If the value continues to decline, it could signal increasing distribution and weakening bullish momentum.
Assuming the altcoin’s price faces a sharp pullback, it might test the nearby support at the $160 range. Further downside correction invites the death cross to emerge, which could trigger a steady drop, accelerating Solana toward its former lows around $157.14.
On the contrary, if Solana bulls appear, the price could mount toward the resistance range of $161.86. Breaking beyond this mark might trigger a golden cross to form, supporting the asset’s recovery, driving the price to the $162 mark for a sturdy upside correction.
Moreover, the altcoin’s daily relative strength index (RSI) settled at 39.95, suggesting its bearish condition, but not yet oversold. Besides, the Bull Bear Power (BBP) value of Solana at -11.83 indicates a strong bearish pressure in the market, with the bears driving the price significantly lower.
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