Key Takeaways
- Solana’s SOL token has dropped by 9% in the last 24 hours and is at risk of falling to the $120 support level.
- A head-and-shoulders pattern on the daily chart indicates that bears are firmly in control.
Solana Faces Steep Decline Amid Market Downturn
In a considerable setback, Solana’s native token, SOL, has experienced a 9% decline over the past 24 hours. This downward movement brings its price below $130, and analysts suggest it may soon test the critical support level of $120 if the bearish trend continues.
The poor performance of Solana is reflective of broader negative conditions across the cryptocurrency market. Bitcoin, the market leader by market capitalization, has recently dipped to the $100,000 mark as geopolitical tensions escalate in the Middle East.
The United States’ involvement is increasing, with President Trump threatening further airstrikes against Iran. As Bitcoin struggles, other cryptocurrencies, including Ether and SOL, are similarly showing declines.
Potential Support Level Test for SOL at $120
With market conditions trending bearish, sellers are asserting control over the SOL/USD pair. The 4-hour chart suggests that SOL might face additional selling pressure in the upcoming hours and days.
As of press time, SOL is priced at $128.6. Market trends indicate that if the bearish momentum persists, SOL could soon test the next support level at $120. A prolonged downturn could see it fall to $100, a price not seen since April.
Currently, the MACD indicates a strong bearish control, sitting deeply in the negative zone. The SOL/USD pair showcases an RSI of 34, highlighting significant selling pressure on Solana’s native token.
However, should market conditions improve, SOL could reach the first liquidity level around $148 per token, although the second resistance level at $165 appears unlikely unless a substantial market recovery occurs.
