Key takeaways
- SOL has failed to climb above the 20-day EMA and may now test support at $140.
- If bulls cannot defend $140, SOL could fall further toward $123 in the short term.
SOL falls 1% amid broader downtrend
This has been a broadly negative week for cryptocurrencies so far. The ongoing Middle East crisis has wiped billions from crypto markets in recent days, and more downside correction is likely.
One of the worst-performing top-10 market-cap cryptocurrencies is Solana (SOL). The coin has lost 8% of its value over the past seven days and may face further declines as market fundamentals and technical signals weigh on price.
The downtrend coincides with underperformance in Bitcoin and other large-cap tokens. If the conflict between Israel and Iran continues, SOL could suffer additional losses in the coming days.
A neutral interest rate decision by the U.S. Federal Reserve on Wednesday offered little support for SOL and other major cryptocurrencies.
Bears target $140 support
So far bulls have done a decent job defending SOL around $145. However, the price action remains tilted lower and could test support at $140 in the hours or days ahead.
Buyers pushed SOL above the 20-day EMA ($154) earlier this week but failed to clear the 50-day SMA resistance at $160. That rejection allowed bears to press the price down toward the critical $140 support level.
If $140 does not hold, the SOL/USDT pair could complete a descending head-and-shoulders pattern and eventually drop to the next support zones at $123 and $110. The RSI reading near 42 suggests SOL is approaching oversold territory.
Conversely, if bulls regain control and lift the price above the 50-day SMA, that would signal strong buying around $140. A sustained move above the 50-day SMA could keep SOL trading in a $140–$185 range for a while. The market would turn bullish if SOL closes above the psychological $185 level.