- Solana (SOL) has experienced a significant sell-off amid broader market downturns, with its price dropping below $140 and targeting a pitstop near $122.
- The S&P 500 has declined close to 3% recently, adding to the bearish sentiment across crypto markets.
- Recent technical indicators show that SOL is facing extreme selling pressure, with the RSI and MACD at levels not seen since mid-2023 and 2022, respectively.
The crypto markets are painted in red today, with the S&P 500 dropping close to 3% over the past few days. Solana, which was already struggling in a sinking market, has seen a surge in selling pressure that caused its price to drop below $140.
Currently, SOL is under downward pressure, and many analysts believe that the next pitstop could be around $122. This has led to growing questions among investors about whether it is the right time to buy Solana and if the token has a bullish future.
Rising Solana Sell-Offs and Market Uncertainty
Solana has been caught in a storm of bearish sentiment amid a broader market correction. The sell-off has been exacerbated by recent events, including the escalation of rug pull cases involving memecoins on the Solana chain.
This has dampened trader confidence, and the situation worsened when Binance liquidated massive amounts of SOL through its market maker Wintermute. Some speculate that Binance may be deliberately dumping the token to buy back at lower prices, while others believe that the exchange is simply reacting to underlying market updates that have turned sentiment negative.
Recent technical analysis shows that SOL is facing extreme selling pressure. The token’s RSI has dropped to levels not observed since June 2023, and its MACD has been declining since 2022, indicating that bearish momentum is intensifying.
Furthermore, the on-balance volume (OBV) has been falling steadily since the start of the month, suggesting that overall market sentiment has turned decidedly bearish. With these indicators, SOL is currently trading within a pivotal support range between $136.5 and $133.6—a level that has provided a strong base throughout 2024.
However, the prevailing trend suggests that SOL may soon fail to defend these support levels, potentially leading to a further decline toward the $100 mark.
Given the ongoing bearish pressure and the significant liquidations already seen, the outlook for Solana appears challenging. The current trade setup indicates that unless buying pressure can be revived, SOL’s price may continue its descent.
A sustained close below the crucial support of around $119 could signal a transition into a bear market, with the possibility of further dips to $100.
