1. Current Price and Trend
As of now, $SOL is trading around $155. After failing to break through the $160 resistance, downward pressure has increased, leading to a short-term bearish trend. A Descending Triangle pattern has formed on the chart, which typically signals a continuation of the current downtrend if key support levels fail to hold.
2. Key Technical Indicators
RSI (Relative Strength Index): Currently, SOL's RSI is below the neutral 50 level, indicating that sellers are in control. If the RSI continues to move closer to 30, the market may enter an oversold condition, which could trigger a technical rebound in the near term.
MA (Moving Averages): The 50-day moving average (MA) is reflecting weakness, while strong support is being found near the 200-day MA, which lies around the $130-$135 range. This suggests that the bearish momentum could persist unless sentiment shifts.
ADX (Average Directional Index): The ADX is currently at a moderate level, indicating that while the downtrend is present, it hasn’t gained full momentum yet. An increase in ADX would signal a stronger bearish continuation.
3. Support and Resistance Levels
Resistance: Key resistance levels stand at $160 and $193. Breaking above $160 could spark renewed buying interest, especially if broader market conditions turn bullish.
Support: The primary support level is $123. A break below this level could lead to a deeper correction, potentially signaling further downside risks.
4. Trading Volume (RVOL)
Solana’s relative trading volume (RVOL) has seen a slight decline, which often indicates weakening market participation. This could reinforce the bearish outlook in the short term if trading volume doesn’t pick up soon. Lower volume may contribute to the continuation of the current downward trend.
5. Conclusion and Recommendations
The Solana market is currently in a delicate phase, with increased selling pressure near key support at $123. If this level holds, a bounce could lead the price to test resistance levels at $160 and $193. However, a break below support could result in further losses.
Investors and traders should closely monitor technical indicators and price movements around key levels to make informed decisions.
