Solana (SOL) is nearing a crucial price zone between $120-$130, which will determine its next move. Currently trading at $135.91, SOL is significantly below its recent $180 resistance level. A failure to maintain support above $125 could trigger a further decline, with targets at $110 and potentially $80-$85.
Market Overview & Key Technical Indicators
1. Price Action and Support Levels
• Current Price: $135.91
• Immediate Resistance: $150-$160
• Major Resistance: $180-$185
• Key Support Zone: $120-$130 (Critical Make-or-Break Level)
• Next Downside Targets: $110, then $80-$85
If SOL closes a 4-hour candle below $125, expect further bearish momentum with the potential for a breakdown to $110 or beyond.
2. Exponential Moving Averages (EMA) Point to Downtrend
• 9-EMA: $144.80 (Short-term bearish signal)
• 21-EMA: $147.51 (Bearish crossover confirmed)
SOL is trading below both EMAs, reinforcing the bearish trend. A reclaim of these levels is needed for any potential recovery.
3. Volume & RSI: Bears Dominate
• Volume: Increased selling pressure confirms the bearish trend.
• Relative Strength Index (RSI): 39.38 (Approaching oversold conditions)
A drop below 30 on the RSI may signal an oversold condition, potentially triggering a short-term bounce. However, with high sell volume, the bearish trend remains intact.
Solana Price Prediction: Bearish Outlook Prevails
Bearish Scenario
• A confirmed breakdown below $125 could lead to a decline to $110.
• If $110 fails to hold, expect the next support at $80-$85, marking a significant drop.
• Downward-sloping EMAs and high sell volume suggest sellers are in control.
Bullish Scenario
• If SOL holds the $120-$130 support zone, a rebound towards $150-$160 is possible.
• A break above $180-$185 with strong volume may trigger a bullish reversal.
Conclusion: Bearish Sentiment Prevails
Currently, the market is controlled by bears, and long trades are not recommended. Traders should consider shorting SOL if the price breaks below $125, with a stop-loss at $135.
A bullish reversal would require a breakout above $180-$185 with solid volume. Until then, the bearish trend remains dominant, and further downside risks are high. Trade with caution.
Key Trading Signals:
- Short Signal: If SOL breaks below $125, target $110.
- Stop-Loss: Place stop-loss at $135 for short positions.
- Long Signal: Only if SOL reclaims $180-$185 with significant volume.
