- Solana is down over 3%, hovering around the $194 mark.
- The SOL market has seen liquidations totalling $58.64M.
The crypto market’s rollercoaster ride has pushed the digital assets to lose momentum, enter a bearish zone. With the fear sentiment flourishing, all the prices are charted in red, including Bitcoin (BTC) and Ethereum (ETH). They are hovering around $112.9K and $4K. Among the altcoin pack, Solana (SOL) has seen a drop of over 3.29% in the last 24 hours.
Multiple crucial support and resistance levels have been tested by Solana for a steady recovery. But resulted in back-to-back rejections, and could not sustain the track above $200. Meanwhile, the asset opened the day trading at $203.83, and with the bearish turnover in the SOL market, the price has retraced to a bottom range of $191.39.
As of this writing, Solana traded within the $194.63 zone, with its market cap touching the $107.27 billion mark. In addition, the daily trading volume has surged by over 22.87%, reaching $7.78 billion. It is worth noting that the market has observed a 24-hour liquidation of $58.64 million worth of Solana, as reported by Coinglass data.
The Ali chart reveals that around 24.5 million Solana were accumulated in the $189 price range, forming a strong cost basis support zone. It could influence the asset’s next move, making it a key zone where the buyers may step in to prevent further downside if the price drops again.
Can Solana Prevent a Deeper Dive?
Solana’s Moving Average Convergence Divergence (MACD) line is found below the signal line, which implies bearish momentum. Also, the downtrend may continue and give a signal to stay cautious until a reversal appears. Besides, the Chaikin Money Flow (CMF) indicator settled at 0.07 points that a slight buying pressure is present in the SOL market. The ongoing momentum is not strong, and a move above 0.10 may confirm a steady bullish sentiment.
Assuming the Solana slips beneath $192, the bears could take the price to its next crucial support range at around $189. Further downward push might trigger the emergence of the death cross, leading to more losses. Conversely, if the SOL bulls appear, the price could rise and find the resistance at the $196 level. An extended upside correction might invite the golden cross to take place. It may likely send the price to its former high above $199.
Moreover, the daily Relative Strength Index (RSI) of Solana is positioned at 45.54, suggesting that the market is in a neutral zone. It is a balanced phase, showing neither strong buying nor selling momentum. SOL’s Bull Bear Power (BBP) reading of -5.74 indicates that bears have the upper hand in the market. The sellers are dominating the market, with selling pressure outweighing buying interest. Unless buyers regain control, the trend could lean further to the downside.
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