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Solana Price Analysis: Will SOL Drop to $120?
Over the past few weeks, the Solana cryptocurrency has tested the $160 resistance mark multiple times. Despite its recent climb to this benchmark, the digital asset has once again experienced a retreat, leaving market participants pondering the possibility of a decline to the $120 range.
Initial price predictions for SOL indicate a potential reversion to its month-long trading range, unless the coin manages to establish a strong foothold in the $165 to $170 range. However, dwindling on-chain activity points to decreasing usage and demand for Solana, hinting at a continuation of the ongoing correction phase.
With traders anticipating a return to previous lows due to the rejection from the high range, the midpoint support level between $156 and $116 offers a crucial price zone at $136. Fibonacci retracement levels at $141 and $122 are expected to provide considerable support, with the current support for Solana resting at the $141 level following a 10.8% decline.
Technical indicators further reinforce the bearish sentiment, as the Relative Strength Index (RSI) slips below the neutral 50 mark, signaling downward momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) fluctuates between bullish and bearish tendencies, indicating a lack of clear direction for SOL’s price movements.
Investors are eyeing a potential relief bounce around the $136 mid-range support, although weak trading volume could pave the way for a further drop towards the $122 mark. At the time of writing, Solana is trading at $154.67, reflecting a 7.66% increase over the past 24 hours.
While Solana has demonstrated remarkable recovery capabilities in the past, the current lack of bullish conviction poses challenges for its future trajectory, leaving market participants cautiously optimistic about the coin’s potential bullish return.
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