Solana is currently hovering around the crucial $137 support level, facing intense pressure from market bears. The cryptocurrency’s future trajectory hangs in the balance as traders closely watch to see if the bulls can defend this critical zone and trigger a rebound, or if a downward breakout will occur, potentially leading to further declines.
Recently, after failing to break past the $164 resistance level, Solana’s price has adopted a bearish trend on the 4-hour chart. The cryptocurrency is now trading below its 100-day Simple Moving Average (SMA), indicating a shift in market sentiment. Should the price continue its descent and breach the $137 support level, it could experience extended selling pressure, opening the door to additional losses.
The on-chain analysis paints a clearer picture of Solana’s current predicament. An examination of the 4-hour Relative Strength Index (RSI) reveals a drop to around 33%, signifying that buying pressure is waning. An RSI below 40% typically indicates that an asset may be entering oversold territory, which can often lead to further price declines.
On the daily chart, Solana is showing a series of bearish candlesticks, emphasizing the prevailing selling pressure. The cryptocurrency is still trading below its 100-day SMA, reinforcing the likelihood of continued bearish momentum. Furthermore, the daily RSI has fallen to 43%, dropping below the critical 50% threshold and indicating that the asset is losing strength. This signal often hints at potential further declines unless a significant reversal occurs.
The $137 support level remains a critical battleground for Solana. If the bulls successfully defend this position, it could restore market confidence and potentially pave the way for a recovery toward the $164 resistance level. However, if this support is breached, it could trigger substantial selling pressure, driving the price down to the $118 support level. A continued decline past this point could see Solana targeting even lower support areas around the $99 mark. Such a scenario would likely amplify bearish sentiment, leading to a more pronounced downtrend in Solana’s price.