Solana Price Prediction: SOL Drops Below $140 with an 8% Decline – Is More Selling Ahead?
In the past 24 hours, Solana’s price has experienced a significant 7.76% pullback, falling below the crucial long-term support level of $139.50. This movement indicates that Solana might be gearing up for further declines.
This recent drop is part of a broader 10.78% decline since last Thursday, mirroring the retracement seen in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Despite a 15.77% decline this month, Solana’s annual return stands at an impressive 595.28%, far outpacing other leading cryptocurrencies.
Additionally, Solana’s trading volume surged by 12.55% in the past 24 hours, reaching $3.02 billion, suggesting increased trading activity and market interest.
A closer look at Solana’s price chart reveals that the increase in trading volume might indicate further selling pressure.
Most notably, Solana’s price has broken below the key long-term support level of $139.50, signaling weakening strength and a shift towards bearish market sentiment.
Solana now appears to be heading towards retesting the $135.65 resistance level. If it successfully overcomes this, it might drive a reversal and reclaim the long-term support level.
Given that Solana is in the oversold territory with a Relative Strength Index (RSI) of 30, this suggests the asset might be undervalued, indicating a potential need for correction.
However, the broader trend casts doubt on this outlook. Notably, the 30-day Moving Average (30DMA) is sharply declining, recently crossing below the 200DMA, which remains neutral. This indicates strong short-term bearish momentum, with the long-term trend potentially shifting from neutral to negative.
Therefore, caution is warranted as further declines could be on the horizon. While this sets a negative precedent in the short term, long-term sustained growth may depend on fundamental factors.
Notably, the progress in launching a Solana Exchange Traded Fund (ETF) could significantly boost Solana’s adoption and investor confidence, influencing its long-term growth trajectory. VanEck, known as a pioneer in Bitcoin ETFs, has applied for a Solana ETF, marking a significant development for the cryptocurrency.
