- Solana (SOL) has dropped significantly from over $200 to struggling around $133, with potential for further declines.
- After a short rebound above $150, bearish pressures pushed SOL back near critical support at $133.
- Overall bearish sentiment and Bitcoin’s weak performance may drive SOL below critical support levels.
The cryptocurrency market has been a battleground of volatility, and Solana (SOL), a prominent digital asset, has found itself in the crosshairs of a relentless bearish onslaught.
After a precipitous decline from its yearly highs above $200, Solana’s price faced a severe breakdown, breaching the crucial support level at $175. This bearish onslaught saw massive bearish candles form as the bears dragged the price levels close to $140 and eventually below.
Currently, the SOL price is attempting to remain above the key support level of $133. However, the current technical setup suggests that there is a possibility of further price declines in the near future.
Will Solana reclaim $150?
The downward spiral began with a sudden collapse from the $150 mark, where the bulls managed to mount a temporary recovery, elevating the price from the lows around $116 to highs above $150.
Unfortunately, this respite was short-lived, as the bears swiftly regained control, pushing the levels below $135, precariously close to the key support level at $133. Fortunately, the trading volume has dropped to some extent, suggesting a potential decrease in selling pressure, which may prevent further downside for the time being.
As Solana’s price tests these pivotal support levels, there is an expectation of a strong rebound. However, the prevailing technical setup appears to favor the bears, with only minor chances of a bullish resurgence.
One glimmer of hope lies in the Relative Strength Index (RSI), which is on the verge of triggering a healthy rebound, having reached levels not seen since September 2023. If such a rebound materializes, it could potentially propel the SOL price towards an all-time high above $500 in the coming days.
However, the risk of a breakdown below the $133 support looms large, as market sentiment remains overwhelmingly bearish. Bitcoin’s failure to recover above the $65,000 mark has exerted immense pressure on the entire cryptocurrency space, casting a dark shadow over the prospects of alternative digital assets like Solana.
If the Solana price succumbs to the bearish onslaught and slumps below the $133 support, the lower support zone between $120 and $118 may attempt to offer a base for a potential rebound.
