According to U.Today, Solana has been on a downward trend since April, with its price dropping from highs of around $200. Currently, the cryptocurrency is in a challenging phase, moving downwards, but there are indications that this bearish momentum might be easing. The dwindling trading volume is a key indicator that the selling activity is losing momentum. This decrease in volume often comes before a possible reversal as it shows a lack of confidence in the continuation of the current trend.
Solana's recent price action supports this, as the asset is struggling to maintain its downward momentum, suggesting a potential shift in market sentiment. Solana is testing significant support around the $130 mark, which could be crucial in the coming weeks. This level has become a new low point for the asset, and staying above it could be the first sign of a potential reversal, possibly indicating the formation of a higher low — a positive sign for investors looking for a turnaround.
However, there are still challenges. The 26-day EMA is acting as a strong resistance, along with a trend line resistance visible on the chart. These technical barriers will need to be overcome for a convincing bullish reversal. The next immediate support after $130 is around $140, coinciding with the 100-day EMA, providing another critical level that could bolster Solana’s price if the current support holds.
Looking forward, Solana's future depends on its ability to stay above these support levels and break through key resistances. A successful breach of the 26-day EMA and the trend line could spark renewed interest in Solana, potentially leading to a recovery phase.