After falling over 5%, Solana is trading in the $125 range.
The market has recorded $12.7 million in SOL liquidations. The lingering bearish wave in the crypto market continues to hinder assets from reclaiming their lost bullish momentum. Bears have dragged Bitcoin near $84K, while Ethereum trades around $1.5K. Meanwhile, Solana (SOL) has posted a loss of over 5.26%.
Solana’s recovery can loom after testing key support and resistance levels amid the fluctuating market. The asset opened the day trading at around a peak of $134.19, and the mighty bears pulled SOL back to $123.72.
At press time, Solana traded within the $125.91 level, with its daily trading volume reaching $3.34 billion. Furthermore, the SOL market has witnessed a 24-hour liquidation of $12.70 million, as per Coinglass data.
The Alichart exhibits that Solana is retesting a key support-turned-resistance level from a right-angled ascending broadening pattern. If it fails to break above this zone, it could confirm the breakdown and head lower toward the $65 mark.
Can SOL Avoid Further Losses?
The Moving Average Convergence Divergence (MACD) line of Solana has crossed below the signal line. This crossover signals the bearish momentum, and the asset may face more downside.
SOL chart (Source: TradingView)
SOL’s Chaikin Money Flow (CMF) indicator settled at -0.22, inferring a negative capital flow within the market. In the meantime, the daily trading volume of the asset has dropped by over 9%.
Assuming the sharp pullback of SOL’s price, that might test the support at the range of $121.31. Formation of a death cross could trigger a drop past this level, which accelerates further downside to its previous lows near $116.
Contrarily, if Solana mounts toward the $129 range, it could target its crucial resistance. Breaking this mark might trigger a golden cross to aid the recovery, sending the price to $134.36 for a strong upside correction.
The daily relative strength index (RSI) at 48.66 infers the asset is neither overbought nor oversold. Moreover, SOL’s Bull Bear Power (BBP) value of -5.70 reflects the power of bears in the market.
Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. The NewsCrypto team encourages all to do their own research before investing.
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