Key takeaways
- Solana’s SOL fell 9% over the past 24 hours and faces the possibility of declining to the $120 support level.
- A head-and-shoulders formation on the daily chart suggests bears currently control the market.
Solana drops 9% amid broader market bearishness
SOL, the native token of the Solana ecosystem, declined by 9% in the last 24 hours and could fall further in the coming hours and days. At the time of writing, SOL has slipped below $130 and may test the $120 support level if the bearish trend persists.
Solana’s weakness is occurring against a broader market downturn. Bitcoin, the largest cryptocurrency by market capitalization, moved down toward the $100k area as geopolitical tensions in the Middle East intensified.
Rising involvement from the United States and threats of further strikes against Iran have added volatility. As Bitcoin weakened toward $100k, Ether, SOL and other major cryptocurrencies also traded lower.
SOL could test $120 support
With the broader market biased to the downside, sellers are in control of the SOL/USD pair. The 4-hour chart indicates SOL may face additional selling pressure in the hours and days ahead.
Currently, SOL is trading around $128.60. If the bearish momentum continues, SOL could soon retest the next support near $120. A prolonged downtrend could push SOL toward $100, a level not seen since April.
Technical indicators reinforce the bearish view. The MACD sits deep in negative territory, signaling seller dominance. The SOL/USD pair’s RSI is around 34, reflecting strong selling pressure on Solana’s native token.
If market conditions improve, SOL could reclaim the first liquidity zone near $148 per token. A move toward the second resistance level around $165 appears unlikely unless the market enters a broad-based rally.