- SOL was down by more than 20% in the last seven days.
- A few metrics and technical indicators turned bullish on SOL.
Solana [SOL] was one of the worst-affected altcoins during the market crash, as the token’s value dropped by double digits.
However, things can get even worse for Solana, as its price plummeted below a crucial support level.
Solana is sinking
According to CoinMarketCap, Solana was down by more than 20% in the last seven days. In the past 24 hours alone, the token’s value sank by over 6%.
At the time of writing, SOL was trading at $142.9 with a market capitalization of over $63 billion.
In an additional spot of bad news, while the token’s price dipped, its trading volume surged by over 70%, legitimizing the downtrend.
AMBCrypto’s analysis of Santiment’s data revealed that SOL’s Price Volatility 1w spiked. Bearish sentiment around the token also remained dominant, which was evident from its low Weighted Sentiment.
Nonetheless, SOL’s Social Volume remained high, reflecting its popularity in the crypto space.
Source: Santiment
Solana’s concerns were far from over, though, as the token’s value dropped under a critical support zone.
Crypto Tony, a popular crypto analyst, recently posted a tweet highlighting that SOL’s price was testing its support near $150.99. Unfortunately, at press time, the token’s price had dipped.
This suggested that Solana investors might witness the token’s price plummet further in the coming days.
Solana’s support levels
AMBCrypto then checked Hyblock Capital’s data to find the next possible support levels for SOL. As per our analysis, SOL’s liquidation will increase sharply near $130, which can act as a support.
If the token fails to test that, then its price might decline further down to $120 before it gains bullish momentum.
Source: Hyblocvk Capital
The technical indicator MACD also displayed a bearish upperhand in the market, indicating a further price decline. However, the rest of the indicators turned bullish and hinted at a possible trend reversal.
For instance, the Relative Strength Index (RSI) registered an uptick after touching the oversold zone. Additionally, the Chaikin Money Flow (CMF) also moved upward from the neutral mark of 0.
Source: TradingView
Read Solana’s [SOL] Price Prediction 2024-25
Apart from this, things in the derivatives market turned bullish. The token’s Open Interest dropped sharply along with its price.
A decline in the metric usually suggests ongoing market trends might change. Solana’s Funding Rate also declined, meaning that derivatives investors were not buying SOL at its low price at press time.
Source: Santiment
