In March, Solana (SOL) encountered significant resistance at the $210 mark, which led to a price decline close to the 200-day exponential moving average (EMA) at $127. Currently, SOL has found critical support between $127 and $131 and is trading around $142.

Prices down 37%: What does this mean?

The past three months have been tough for SOL, which has lost 37% of its value. During this period, the altcoin has formed a falling wedge pattern on the daily chart, which often hints at a potential reversal. Support in the $127-131 range allowed it to break above the $154 level. Nonetheless, resistance at the 20-day and 50-day EMAs at $140 and $146 prevented it from making significant progress.

Is the 200-day EMA crucial?

SOL has shown resilience despite retesting the 200-day EMA level, which has not occurred in the past nine months. Historically, a break below this key level led to a 1.5-year downtrend that began in January 2022. Currently, the 200-day EMA is closely aligned with the $127-$131 support range, suggesting that a rebound could be in the short term if this support holds.

Recommended strategies:

– Monitor the $127–$131 support range for potential buying opportunities.

– Plan to exit near the $154 resistance.

– A close above $154 could open the door to $170.

– A close below $127-131 could signal a long-term downtrend.

The Moving Average Convergence Divergence (MACD) indicator still shows a bearish trend for SOL. To break out of the current consolidation phase, the MACD line must rise above zero, which would indicate a shift in momentum. Until then, investors should remain cautious as downward pressure persists.

According to Coinglass data, SOL’s funding rates have fallen below zero, indicating bearish market sentiment. Any improvement in these rates could provide SOL with short-term momentum.

In conclusion, in the current bearish environment, careful monitoring of support and resistance levels is crucial for strategic decision making

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