Solana (SOL) is currently in a precarious position, fluctuating around critical technical support as bearish momentum lingers in the market. As of now, SOL is trading at $79.25, marking a 1.6% decrease over the last 24 hours. In relation to Bitcoin, it stands at 0.001193 BTC, down 0.8% for the day.
The trading activity over the past 24 hours has shown notable volatility, with prices ranging between $76.81 and $82.05. Initially, SOL hovered in the $80–$82 range before a swift selloff pushed it below $78, hitting a daily low around $76.81. A slight recovery has brought the price back to its current level near $79, yet it has not managed to reclaim the recent highs of approximately $82, which poses immediate resistance.
Examining performance metrics across various timeframes reveals a mixed picture. For instance, while SOL has gained 0.2% in the last hour, it has dropped 1.4% over the past day and 0.5% in the last week, indicating weakness in the short term. Alarmingly, the asset has seen a significant decline of 31.6% over two weeks and 45.3% over the past month, clearly illustrating a macro drawdown phase.
The primary question confronting traders now is whether this period of consolidation represents a foundation for a potential upward movement or if it merely signals a pause before further declines.
Technical Analysis of Solana
From a technical standpoint, SOL is currently trading around $79.72, having recently touched lows in the mid-$70s. The immediate support level appears to be in the $75–$77 range, coinciding with a recent swing low and a significant wick rejection. A failure to hold this support could lead to further declines toward psychological support at $70, which aligns closely with the current Parabolic SAR reading of $69.32.
On the upside, immediate resistance has formed around the $90 mark, with a heavier supply zone situated between $100 and $110. The recent shift in the Parabolic SAR, where the dots have changed positions to below the price after the latest rebound, suggests a potential short-term trend reversal or at least a pause in the ongoing bearish momentum. However, the broader picture still indicates a persistent daily downtrend, as previous SAR alignments remained above the price throughout the recent selloff.
The True Strength Index (TSI) provides further clarity on current momentum conditions, with the TSI line at approximately -43.91 and the signal line near -36.33, both significantly below the zero line. This confirms that bearish momentum continues to dominate. For a definitive bullish shift, traders will need to see the TSI line curve upward and cross above the signal line, while the price maintains above the Parabolic SAR and overcomes resistance levels.
Potential Downside for Solana
In a concerning outlook, analyst Altcoin Sherpa has cautioned that if Solana falls below its current support level, it could plummet towards the $50 mark. This highlights the critical zone around $75–$77. The analysis indicates that SOL is presently trading near $77.35, having faced a sharp rejection from above the 200-week EMA, which is around $121, and has notably broken down from the $95 region. Historical support is located near $51.23, a price level that corresponds with previous consolidation and a significant resistance-turned-support zone. If the $77 level does not hold, the technical structure suggests a potential vacuum toward the $50–$52 range, validating Sherpa”s bearish scenario.
