The Solana (SOL) cryptocurrency is experiencing a significant bearish wave as it struggles to maintain key support levels. According to recent price analysis, SOL has declined by 2.26% over the last 24 hours and is currently trading at $122.16, having failed to stay above the critical $126 level.
Technical indicators point to increasing bearish momentum. On the hourly chart, SOL has made a false breakout of the local support at $121.14. A bearish trend line is forming with resistance at $124, and the price is now trading below both $125 and the 100-hourly simple moving average. The hourly MACD is gaining pace in the bearish zone, while the RSI remains below the 50 level, indicating weakening buying pressure.
Key support and resistance levels are being tested. Initial support is found near $122, with the first major support at the $120 zone, which aligns with the 76.4% Fibonacci retracement level of the upward wave from $117 to $127. If sellers' pressure continues and the daily candle closes around $120, analysts expect a potential correction toward the $116.88 level. A break below $120 could send SOL toward $112, with further downside potentially reaching $105.
On the upside, resistance remains formidable. The price faces immediate resistance near $125 and the trend line at $124. The next major resistance levels are at $128 and $130. A successful close above $130 could set the stage for another steady increase toward $135 and potentially $142. However, from a midterm perspective, bears currently appear more powerful than bulls, with no reversal signals yet visible on longer time frames.
The broader market context shows that Solana's correction mirrors similar movements in Bitcoin and Ethereum, suggesting broader market weakness. If the weekly bar closes around current prices or below, traders may see a test of the $100-$110 area by the end of the month.
