- 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.
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.
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.