Today, the Solana price experienced a slight pullback amid a broader market downturn, with most top 100 coins dipping more than 2.5%. Despite this, there are indications of an upturn.
The SOL price has decreased by 3.72% over the past 24 hours, bringing it down to $131.71.
In a pullback, Solana has posted a weekly loss of 11.13%, following the trend of major cryptos like Bitcoin (BTC) and Ethereum (ETH), which have also retraced.
Although Solana has fallen by 26.85% this month, it has still achieved an impressive return of 691.41% this year, far surpassing that of other leading cryptocurrencies.
The coin’s 24-hour trading volume dropped 1.50% to $2.13B, indicating a slight shift in activity among traders.
Solana Price Approaches Key Support – Bounce Incoming?
The Solana price seems to be gearing up to bounce as it finds footing at a key support level.
Notably, After flirting with the $129.75 support level (grey) at the hour’s low point, Solana managed to close above it. This suggests that the downward momentum has been weakened and potentially stabilized.
If Solana can decisively break upwards from here, it would confirm this weakened selling pressure. The support would hold strong, forming a foundation for a potential swing to the upside.
This possibility is supported by the coin’s relative strength index (RSI) (purple), which has surged from 20 to 40 in the past hour. This indicates increasing buying momentum and a potential trend reversal.
However, BONK’s 30-day moving average (yellow) is trending downward, positioned below the 200-day moving average (blue), which is also declining. This suggests persistent downward momentum in both the short and long term.
Hence, the current stability might not provide a strong enough foundation for a wider trend reversal, potentially signaling further retracements.
This price action is likely credited to the overall market sentiment following the US Federal Reserve’s hawkish stance on inflation. Traders are uncertain following the disappointing macroeconomic forecast.
In a recent Bloomberg interview, Coinshares Advisor Meltem Demirors cited market activity as indicating a “sideways summer” as the market consolidates. Meanwhile, other experts see this consolidation as a prelude to an upcoming altcoin season.
