Solana marked a loss of over 2%, trading at $190.
SOL has witnessed a 24-hour liquidation of $20.30 million.
With many major assets trapped in a bearish phase, the crypto market is now eyeing a gradual recovery toward new highs. Ethereum, the largest altcoin, has slipped to the $3.2K mark, while Solana (SOL) shows a consistent downward movement.
Following the continued rejection, the altcoin has plunged below the critical $195 threshold, reflecting sturdy bearish momentum. Notably, SOL has registered a loss of over 2.25%. With a $92 billion market cap, Solana trades at $190.26.
The altcoin opened the day trading at $194.36, and the asset has mounted to a high of $195.36. Later, the Solana price sharply fell back to visit its former low of $182.32.
Concurrently, the market has witnessed $20.30 million in SOL liquidations over the past 24 hours, as per Coinglass data. The daily trading volume of the altcoin has reached $3.85 billion.
SOL has fallen nearly 10% in the past seven days after failing to break the $225 resistance level. The weekly low and high are respectively marked at $183 and $222. range.
Is Solana at Risk of Further Declines?
Solana’s Moving Average Convergence Divergence (MACD) line and the signal line are settled below the zero line. This crossover indicates a steady bearish trend with selling pressure dominating the market.
SOL chart (Source: TradingView)
Besides, the Chaikin Money Flow (CMF) indicator is found at -0.18, suggesting a negative money flow. This negative value shows that selling pressure outweighs buying pressure. Meanwhile, the trading volume of SOL has dropped by 8.11%.
If the in-progress downtrend prolongs, the SOL price may likely test the support at $186.32. This recently formed death cross could lead to further declines, with the crucial $180 range as the next target.
Assuming SOL’s bullish momentum is revived, the price might challenge the resistance at $194.21. A potential breakout above this trading level could push for extended gains, toward the $200 mark.
Moreover, the daily relative strength index (RSI) is resting at 34.47, inferring that the asset is in oversold territory, signalling a negative sentiment. Moreover, the daily trading window of Solana exhibits the short-term 9-day MA below the long-term 21-day MA.
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