As liquidations in the crypto market rise up to a billion dollars, Solana is witnessing a massive crash. The sudden surge in bearishness in the crypto market undermines the weak recovery in the SOL price trend, resulting in a pullback under $140.
Currently, Solana trades at a market price of $136 with a market cap of $69 billion. As the sixth biggest cryptocurrency, Solana is down nearly 16% in the past 24 hours. Will the declining trend in Solana result in a breakdown of the $120 support level?
Solana (SOL) Price Analysis
In the daily chart, the Solana price trend reveals a bullish recovery from the $135 mark to surpass the overhead resistance trendline. The recovery run on Sunday, with a 25% surge, surpassed the 20-day EMA.
However, the sudden turnaround in the crypto market due to tariff wars has resulted in a 20% pullback on Monday. The downtrend continues with a 3.46% pullback and increased pressure over the $135 support level.
Solana has registered a 24-hour low at $132, resulting in a minor pullback with the current market price of $137. The recovery run and sudden increase in price fluctuations resulted in a bullish crossover in the MACD signal line.
However, the average lines are regaining a negative alignment as the bearish powers take control. Furthermore, the 50 and 200-day EMA lines have resulted in a death cross event, increasing the chances of a bearish continuation.
Key SOL Price Support Levels
In case the downtrend continues for Solana, the immediate support level is standing at $120. If the support level fails to absorb the incoming supply, the breakdown rally will likely test the $92 support level. This will mark a breakdown of the $100 psychological mark.
On a bullish front, if the broader market stabilizes, a bullish comeback in Solana could retest the $175 overhead resistance.
Analyst Insights and Fibonacci Levels
According to crypto analyst Ali Martinez, Solana is consolidating in a right-angled ascending broadening pattern. However, the analyst tweeted about the pattern when the market price was at $161.
The recent downturn has pushed Solana closer to testing its local support trendline near $128. If Solana fails to hold the $130 mark, the bearish trend may extend toward the $100 psychological mark, aligning with the 1.272 Fibonacci level.
