Key takeaways
- SOL failed to break above the 20-day EMA and may now test support near $140.
- If bulls cannot defend $140, SOL could drop further in the short term toward $123.
SOL falls 1% amid broader bearish performance
This week has been negative overall for the cryptocurrency market. The ongoing Middle East tensions erased billions from crypto market value in recent days, and further downside correction remains possible.
Among the top 10 cryptocurrencies by market capitalization, Solana (SOL) is one of the worst performers. The token has lost about 8% of its value over the past seven days and now faces the prospect of additional downward movement driven by market fundamentals and technical signals.
These weak results coincide with disappointing performance from Bitcoin and other major cryptocurrencies. If the Israel-Iran conflict continues to escalate, SOL could suffer further losses in the coming days.
A neutral interest rate decision by the U.S. Federal Reserve on Wednesday offered no meaningful relief for SOL or other major digital assets.
Bears target $140 support
So far bulls have done a decent job defending SOL around $145. Nonetheless, the token’s price action remains tilted toward the downside and could test the $140 support level in the next hours or days.
Buyers pushed SOL above the 20-day EMA (about $154) earlier this week but failed to clear the 50-day SMA resistance near $160. That failure allowed bears to drive the price lower toward the critical $140 support zone.
If $140 does not hold, the SOL/USDT pair could complete a bearish head-and-shoulders formation and potentially fall to the next support levels near $123 and $110. The RSI reading around 42 indicates SOL is approaching oversold territory.
Conversely, if bulls regain control and push the price above the 50-day SMA, it would signal strong buying interest around $140. A sustained move above the 50-day SMA could keep SOL trading in a $140–$185 range for a period. The market would shift more decisively bullish if SOL closes above the psychological $185 level.