Connect with us
Active Currencies 14420
Market Cap $2,654,916,693,311.20
Bitcoin Share 49.90%
24h Market Cap Change $-2.63

Solana: Why $142 is a crucial support level for SOL’s price

2min Read

Solana was approaching its support at $142, but a plummet under it could push prices down to $120.

Solana nears key $142 level: Will SOL reach $160 in May?

Share this article

  • Solana was down by more than 5% in the last 24 hours alone. 
  • A few of the metrics and indicators hinted at a trend reversal. 

The market condition pushed most crypto prices down, and Solana [SOL] was not an exception. The price decline caused SOL’s price to dip to a critical level, which can determine the token’s future track. 

Solana approaches support

The last 24 hours witnessed a clear domination of the bears. According to CoinMarketCap, SOL was down by more than 5% over the last day.

At the time of writing, SOL was trading at $144.80 with a market capitalization of over $64 billion, making it the fifth-largest crypto. The declining price action pushed the token’s Weighted Sentiment down.

So, bearish sentiment around SOL was dominant in the market. Its Social Volume also declined, indicating a dip in the token’s popularity in the crypto market.

Solana's social volume declined

Source: Santiment

AMBCrypto’s analysis of SOL’s chart revealed that SOL was fast approaching a crucial support level of $142. If Solana manages to test that support, ten investors can expect a rebound.

But a drop under that could be disastrous. 

Source: TradingView

Which way is Solana headed?

To understand what to expect from SOL in the near term, AMBCrypto analyzed Santiment’s data. We found that SOL’s Open Interest dropped along with its price.

Whenever the metric sinks, it indicates that the chances of the ongoing price trend continuing are low, hinting at a trend reversal.

SOL's funding rate increased

Source: Santiment

However, SOL’s Funding Rate was high, which looked pretty concerning for the token’s price action. On top of that, Solana’s Long Short Ratio declined, indicating a bearish advantage in the market.

If these metrics are to be believed, then SOL’s price might plummet under the $142 support.

Source: Coinglass

The Relative Strength Index (RSI) also remained in bears’ favor as it registered a downtick. Nonetheless, a few of the other indicators provided much-needed relief.

For example, the MACD displayed a bullish upperhand in the market. On top of that, after a sharp decline, Solana’s Chaikin Money Flow (CMF) registered an uptick, which indicated a possible price increase. 

Source: TradingView

If SOL manages to test its support near $142, then investors might witness SOL once again approach its resistance near $160.


Realistic or not, here’s SOL’s market cap in BTC’s terms


AMBCrypto had reported earlier that the token had already approached that level twice last week but faced rejections.

Worst-case scenario: if SOL fails to test the support, then its price could plummet to its next support, near $120-$125, within days.

Share

Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.