Solana ($SOL ) on Verge of Critical Downfall
On the verge of a failure, Solana is displaying some concerning indicators. SOL has now lost momentum following a robust rally in April precisely at a crucial resistance level: the 200 EMA, which is at about $162. Bullish and bearish trends have traditionally been separated by this level, so the recent rejection raises questions about the future of the altcoin.
SOL’s price action indicates that it has failed to sustain its upward trajectory. Buying pressure appears to be rapidly descending as evidenced by the obvious breakdown below the ascending trendline support that sustained the rally from late March to the present. When coupled with an increase in selling volume, the setup suggests that a more significant correction may be about to occur. Technically speaking, the relative strength index or RSI has begun to roll over from overbought territory, suggesting that sellers are taking control and momentum is waning.
The $140 and $130 marks are the immediate support levels to keep an eye on. The next crucial zone to keep an eye on is close to $120, which is a psychological and technical support area if Solana is unable to locate a strong bid at these levels. Here the sentiment of the market as a whole also matters. If Ethereum and Bitcoin keep exhibiting hesitancy or decline, Solana’s precarious situation might rapidly deteriorate.
SOL might move further into correction territory if there isn’t any new buying interest and significant volume to push it back toward the $160 region. Traders and investors should exercise caution for the time being. Unless the asset can regain important levels and rekindle bullish momentum in the upcoming sessions, Solana’s remarkable recovery rally may be in danger of reversing precipitously.
