Is a Bounce Coming to the Solana Price as SOL Approaches the $130 Support Level?

Along with the rest of the market, the Solana price took a little hit today, with the majority of the top 100 coins falling by more over 2.5%. But there are signs of improvement.

With a loss of 3.72 percent on the previous day, the price of SOL is now $131.71.

Following the trend of big cryptocurrencies like as Bitcoin (BTC) and Ethereum (ETH), which have also seen a retracement, Solana has also recorded a weekly loss of 11.13%.

Despite a 26.85% decline this month, Solana still managed a remarkable return of 691.41% for the year, which is far more than other top cryptocurrencies.

A little change in trading activity was shown by the 1.50% decline to $2.13B in the coin's 24-hour trading volume.

Now that it has found support at a critical level, the Solana price is ready to rebound.

Notably, Solana closed above the $129.75 support level (grey) after flirting with it at the hour's low point. It seems that the downward trend has slowed and may have even leveled out.

This reduced selling pressure would be confirmed if Solana can make a strong upward break from here. The support level would remain intact, laying the groundwork for a possible upward movement.

The purple relative strength index (RSI) of the currency has jumped from 20 to 40 in the last hour, lending credence to this notion. This might be a sign of a trend reversal or rising purchasing pressure.

But BONK's 30-day moving average (yellow) is heading in the wrong direction, below the similarly falling 200-day moving average (blue). This points to a long-term and short-term negative trend.

Therefore, more retracements may be in store since the present steadiness may not be sufficient to support a broader trend reversal.

The general market mood after the US Federal Reserve's inflation hawkish tone is probably responsible for this price behavior. In the aftermath of the dismal macroeconomic prediction, traders are filled with uncertainty.

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