Solana (SOL) has taken a sharp 10% dip, falling below the critical $185 support level. This sudden decline has raised concerns among investors, with many questioning whether this is a healthy market correction or the start of a deeper downtrend.
According to data from Kraken, SOL is now trading below its 100-hourly simple moving average, struggling to find strong support. The key level to watch is $175, as a further drop could push SOL toward the $165 range.
With the market in uncertainty, analysts are closely monitoring Solana’s price movements. “The $185 resistance level is crucial—if SOL fails to reclaim it, we may see further losses,” said crypto analyst Aayush Jindal in a recent report.
Solana’s 10% Price Drop: What’s Happening?
Solana’s decline follows a rejection at the $205 resistance level. After failing to sustain momentum, SOL began slipping below key levels, including $200 and $192. The price continued its downward movement, eventually reaching a low of $174.
A decline in overall market sentiment accompanies this drop, as Bitcoin and Ethereum also face selling pressure. However, Solana’s underperformance against these top assets raises concerns about its near-term trajectory.
Key technical indicators:
- Price Resistance: SOL is struggling to break above the $185 level.
- Support Levels: $174 and $170 are key zones to watch. A break below could lead to further declines.
- MACD Indicator: Shows bearish momentum building in the short term.
- RSI (Relative Strength Index): Below 50, signaling weakness.
Can Solana (SOL) Recover from This Correction?
Despite the recent decline, some traders believe this could be a necessary correction before a rebound. Historically, Solana has seen similar pullbacks before continuing its upward trajectory.
The $175 level is critical—if SOL finds strong buying support here, it could stage a recovery. In that case, a move toward $185 and eventually $190 could be possible. However, failure to hold above $175 could result in further downside.
Market expert Saman Waris commented, “Solana needs to reclaim $185 for a potential recovery. If it remains below this level, we might see further selling pressure.”
Key recovery factors:
- Increased buying volume at $175 could stabilize prices.
- Bitcoin and Ethereum’s price action may impact Solana’s recovery.
- Network developments and ecosystem growth could boost investor confidence.
Is There a Risk of Further Decline?
If SOL fails to recover above $185, the risk of further downside remains high. A break below $174 could send the price to $170, with even $165 as a potential target.
Several factors could contribute to a continued decline:
- Market-wide sell-offs: If Bitcoin and Ethereum face more pressure, SOL could follow.
- Weak technical indicators: The MACD and RSI suggest bearish momentum.
- Regulatory concerns: Any negative news regarding crypto regulations could weigh on prices.
Investors should closely monitor these key levels to determine Solana’s next move.
Conclusion
Solana’s recent 10% drop has sparked debates over whether this is a normal correction or the start of a larger downtrend. The $185 level remains a crucial resistance, while $175 serves as a strong support.
If buying pressure increases, SOL could attempt to recover toward $190 and beyond. However, failure to hold above $175 could lead to further declines. Traders and investors should keep a close eye on market trends and technical signals before making any decisions. Keep following Deythere and keep an eye on crypto updates.
Glossary of Key Terms
- Resistance Level: A price point where selling pressure prevents further increases.
- Support Level: A price point where buying pressure prevents further declines.
- MACD Indicator: A trend-following momentum indicator.
- RSI (Relative Strength Index): Measures whether an asset is overbought or oversold.
- Correction: A short-term decline in an asset’s price before resuming an uptrend.
FAQs
Why is Solana’s price dropping?
Solana’s decline is due to technical resistance at $205, broader market weakness, and declining momentum indicators.
What is the key support level for Solana?
The main support levels are $175 and $170. If these break, $165 could be the next target.
Can Solana recover from this drop?
Yes, but SOL needs to reclaim $185 to regain bullish momentum. Otherwise, further declines are possible.
Should I buy Solana at this price?
This depends on your investment strategy. Traders should watch key levels and market conditions before making decisions.
What’s next for Solana?
If SOL breaks above $185, it could push toward $190. If it drops below $175, further declines might follow.
References
- Kraken SOL/USD Market Data
- TradingView Solana Price Charts
- Crypto Analyst Aayush Jindal’s Market Report
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