Key takeaways
- Solana’s SOL has dropped 9% over the past 24 hours and risks testing the $120 support level.
- A head-and-shoulders pattern on the daily timeframe suggests bears remain in control.
Solana slips 9% amid broader market downturn
SOL, the native token of the Solana ecosystem, has declined by 9% in the last 24 hours and may fall further in the coming hours and days. At the time of writing, SOL has dipped below the $130 mark and could test support around $120 if the downtrend continues.
Solana’s weakness comes as the broader market moves lower. Bitcoin, the largest cryptocurrency by market capitalization, has fallen into the $100k region as tensions in the Middle East escalate.
U.S. involvement appears to be increasing, and threats of additional airstrikes on Iran have added to market uncertainty. As Bitcoin slides toward the $100k area, Ether, SOL and other major cryptocurrencies have also moved into negative territory.
SOL may test the $120 support level
With the broader market currently bearish, sellers are controlling the SOL/USD pair. The 4-hour chart indicates SOL could face further selling pressure in the near term.
At the time of publication, SOL is trading around $128.6. If the downtrend persists, SOL could soon test the next support level at $120. A prolonged decline might push SOL toward the $100 level, a price not seen since April.
Technical indicators point to bearish momentum. The MACD sits deep in negative territory, signaling sellers are in control, while the RSI for SOL/USD is around 34, reflecting strong selling pressure on Solana’s native token.
If market conditions improve, SOL could first encounter resistance near the liquidity cluster around $148 per token. A move toward the second resistance area at $165 appears unlikely unless the market mounts a significant rally.