🔥 Solana Hits Critical $137 Support: Can Bulls Prevent A Breakdown?
Solana has hit the key $137 support level, and the bulls are now facing intense pressure to prevent a downward breakout. With the market momentum hanging in the balance, all eyes are on whether the bulls can defend this critical zone and spark a potential rebound. A strong defense at this level could signal renewed bullish strength, while a breakdown could pave the way for further declines.
As traders anticipate Solana’s next move, this article aims to explore its crucial test at the $137 support level, focusing on whether the bulls can withstand increasing pressure. It will evaluate the potential for either a breakout or a rebound, offering insights into SOL’s short-term price direction by delving into key technical indicators and market sentiment.
🔸 Analyzing the RSI And Moving Averages: Bullish Or Bearish Outlook?
Recently, after struggling to break above the $164 resistance level, Solana has adopted a negative trajectory on the 4-hour chart. The price is currently trading below the 100-day Simple Moving Average (SMA), suggesting a shift in market sentiment, as SOL now targets a potential bearish breakout at the $137 level. If the price continues to decline and breaches this support, it could trigger extended selling pressure and open the door to additional losses.
Also, an analysis of the 4-hour Relative Strength Index (RSI) reveals that the RSI has fallen to around 33%, indicating that the buying pressure is diminishing, reflecting a shift in market dynamics. An RSI below 40% often signifies that an asset may be entering oversold territory, which can lead to potential further declines.
On the daily chart, SOL is displaying notable negative movement, evident from a series of bearish candlesticks. This persistent downward trend underscores the prevailing selling pressure in the market, indicating that bears are firmly in control.
