- 1 Solana has breached its upward trendline support zone, revealing selling pressure.
- 2 This week, SOL slipped below its support mark of $150.
The Solana (SOL) price slipped below the crucial support zone of $150 and is revealing the selling pressure this week.
Amidst the rounding bottom pattern and a noteworthy rebound from $120 mark last month, the seller army still has not lost strength and are trying to push SOL below the trendline support to extend the selloff.
Meanwhile, a decisive break and close below the $135 mark would accelerate a selloff, which might push SOL toward $100 in the next few weeks. Since the start of this month, sellers looked active and continued to add their short positions, which led to the price drop.
Conversely, if SOL regains momentum and reclaims the $155 mark, buyers would regain strength and the downtrend would become invalid.
At press time, SOL traded at $144.25 with an intraday surge of 0.06%, reflecting neutrality on the charts. It has a monthly return ratio of -9.20% and 8.43% yearly, reflecting short term weakness.
The pair of SOL/BTC is at 0.00218 BTC, and the market cap is $66.64 Billion. Analysts are neutral and suggest that the SOL may display volatile swings ahead.
Could Solana (SOL) Reclaim $150 Amidst Selloff?
In the last few trading sessions, Solana has faced significant selling pressure and regressed below its key support zone of $150. It breached its upward trendline region and gave a negative outlook over the last few sessions.
Meanwhile, the technicals suggest that SOL was trading near its trap zone and might rebound, trapping the bear cartel. If this happens, it would sharply soar toward the $170 mark.
The RSI curve dropped to the oversold region and witnessed a negative crossover on the charts. Likewise, the MACD indicator displayed a bearish crossover and formed red bars on the histogram.
Its trading volume dropped over 54.34% to $969.27 Million and displays a decline in investor interest. It was ranked 5 in terms of market cap with a total supply of 578.32 million.
Source: Santiment
Analyst @Ali Martinez in his tweet mentioned that Solana has hit a key support level at $141, with the TD Sequential showing a buy signal on the SOL daily chart. If this support holds, SOL could rebound for one to four daily candlesticks.
#Solana has hit a key support level at $141, with the TD Sequential showing a buy signal on the $SOL daily chart! If this support holds, #SOL could rebound for one to four daily candlesticks. pic.twitter.com/AjQX8CGf1d
— Ali (@ali_charts) June 15, 2024
Source: X
Price Volatility and Weighted Sentiment Outlook
This week, the price volatility curve witnessed fluctuations and remained close to the midline region.
Source: Santiment
Similarly, the weighted sentiment value stayed below the midline region and witnessed a surge over 21% this week.
Development Activity and Total Open Interest Data Outlook
The development activity data witnessed a consistent fall and dropped to 64.79 mark, revealing a negative outlook.
Source: Santiment
Furthermore, the futures OI data highlights a long unwinding data and the open interest dropped over 3.29% to $1.8 Billion in the last 24 hours.
The immediate support levels for the SOL price are $135 and $120, whereas the key upside hurdle is around $154 followed by $165
Conclusion
SOL dragged below its 100 day EMA support zone and is directing selling pressure in the last trading sessions. It retested its crucial trendline support level and is at a make or break zone.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
