Key takeaways
- Solana’s SOL is down 9% in the last 24 hours and risks dropping to the $120 support level.
- The head and shoulder pattern on the daily timeframe indicates that the bears are firmly in control.
Solana dips 9% amid wider market bearish movement
SOL, the native coin of the Solana ecosystem, is down 9% in the last 24 hours and could drop lower in the coming hours and days. At press time, SOL has dropped below the $130 mark and could test the $120 support level if the bearish trend continues.
Solana’s poor performance comes amid bearish conditions in the wider market. Bitcoin, the leading cryptocurrency by market cap, has dropped to the $100k region as the crisis in the Middle East escalates.
The United States is increasingly involved, with President Trump threatening further airstrikes on Iran. With Bitcoin dropping to $100k, Ether, SOL, and other major cryptocurrencies are also in the red.
SOL could test the $120 support level
With the broader market currently bearish, sellers are in control of the SOL/UJSD pair. The 4H chart indicates that SOL could face further selling pressure in the coming hours and days.
At press time, the price of SOL stands at $128.6. If the bearish trend continues, SOL could test the next support level at $120 soon. An extended bearish trend could see SOL drop to the $100 level for the first time since April.
The MACD is deeply in the negative zone, indicating sellers are in control. The SOL/USD pair also has an RSI of 34, showing strong selling pressure on Solana’s native coin.
However, if the market conditions improve, SOL could test the first liquidity level around $148 per coin. The second resistance level at $165 seems unlikely at the moment unless the market embarks on a massive rally.
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