Solana's potential for further decline explained
In the cryptocurrency market, Solana (SOL) has experienced a rollercoaster ride over the past month, with a 22% surge followed by a 6% drop in the last few days [1]. The current outlook for SOL is bearish, with several technical indicators pointing towards potential downward pressure.
A rising broadening wedge pattern suggests increased volatility, while Solana's inability to hold above key moving averages like the ALMA at around $150 indicates a weakening of the bullish momentum [1]. Elliott Wave and Fibonacci retracement analysis predict a potential new low as low as $67 [2].
The Moving Average Convergence Divergence (MACD) is currently below its signal line and zero, indicating strong bearish momentum, while the Bear-Bull Power (BBP) indicator is negative, suggesting bear dominance on the daily timeframe [4].
Potential support levels to watch are near $180–$181, which is the closest significant support zone tested after a sharp downward move [4], and the broader range just below $150, which has acted as a key pivot point and short-term support [1]. Longer-term downside targets from wave theory analysis extend down to approximately $67 if bearish momentum intensifies [2].
Despite these bearish signals, there remain potential bullish scenarios in October if SOL completes corrective waves, but these are secondary to the current dominant bearish indicators [2]. Whale activity and volume have increased, which could presage volatility but currently weigh more on the bearish side as price breaks key supports [3].
Several technical indicators like the Relative Strength Index (RSI) show neutral momentum, suggesting the price could consolidate but with a tilt toward bear control unless a reversal signal emerges [4]. The SOPR (Spent Output Profit Ratio) for Solana has dropped from 1.04 to near 1.00 over the past week, indicating that wallets selling currently are barely making any profits [1].
Interestingly, the CMF in 4 hours being negative could indicate that the selling force is about to run out of steam. Moreover, many shorts are at risk of being liquidated, which could potentially lead to a price surge [1].
For those interested in investing in Solana, it can be bought on Bitget by following a specific guide. However, it's crucial to keep a close eye on the price action and technical indicators before making any investment decisions.
Charles Ledoux, a Bitcoin and blockchain technology specialist, has written numerous articles about crypto and could provide valuable insights for investors.
In summary, Solana is facing technical bearish pressure with notable immediate support around $180-$181 and critical longer-term risk near $150 and potentially $67. Close monitoring is necessary before any confident trend reversal can be confirmed.
At the crypto academy, understanding the current finance and investing landscape of Solana (SOL) requires a deep analysis of technology-based indicators. Despite the RSI showing neutral momentum and the SOPR dropping, technical indicators like Elliott Wave and Fibonacci retracement analysis predict potential downward pressure on SOL, with longer-term downside targets near $67 if bearish momentum intensifies.
