Solana is currently hovering around the $179 level.
SOL has experienced a $21.46 million liquidation event. The broader cryptocurrency market is experiencing a downturn, attempting to recover from the potential bear grip. With the red light across the assets, the prices are shedding the recent gains. Following the bearish suit, the largest assets like Bitcoin (BTC) and Ethereum (ETH) are hovering at $115.3K and $4.2K.
Among the altcoins, Solana (SOL) has registered a loss of 2.02% in the last 24 hours. After a series of ups and downs, SOL could not escape the red zone. The altcoin has visited its daily low and high at $177.85 and $185.78, respectively. As per CoinMarketCap data, Solana traded within the $179.65 range at the time of writing.
Meanwhile, with a $96.99 billion market cap, the daily trading volume of SOL has increased by over 13.75% and reached the $5.86 billion mark. Consequently, the Coinglass data reveals that the market has witnessed a liquidation event of $21.46 million worth of Solana during this period.
The Ali chart shows Solana facing downward pressure after failing to hold above $185. With the next major support sitting around $177, the price may slide toward the $160 zone, the next key area. This reflects a weakening momentum after multiple rejections near the $200 resistance.
Is Solana Headed for a Deeper Correction?
The technical indicator assessment of the SOL reports a negative outlook with the Moving Average Convergence Divergence (MACD) line below the signal line. This crossover indicates that the momentum is weakening. Both lines are positioned below the zero line — an overall downtrend, and price action is generally weak.
SOL chart (Source: TradingView)
Additionally, the Chaikin Money Flow (CMF) indicator value is settled at -0.08, suggesting a slight selling pressure in the SOL market. More capital is flowing out of the asset than in, as the sellers are a bit stronger. The current pressure is not extreme; it is more like a mild bearish sentiment rather than a strong distribution.
The asset’s four-hour price pattern exhibits an active correction on the downside. With the bears in action, the price might slip, finding a support range at around $179.57. If the bearish pressure strengthens, the Solana price could drop to the former low at the $179.49 level or even lower, with the emergence of the death cross.
Contrarily, assuming the positive flip of the ongoing momentum, Solana’s price could climb and likely test the nearest resistance at the $179.73 zone. As the bullish power enters the market, the asset can break through a few crucial zones that might push the golden cross to unfold and the price toward $179.81 or above.
SOL chart (Source: TradingView)
Solana’s daily Relative Strength Index (RSI) is found at 38.38, hinting that the momentum is weak, but not yet oversold. Notably, this downward pressure is not extreme enough to guarantee a bounce. Moreover, the Bull Bear Power (BBP) reading of -11.25 signals that the bears are currently dominating and pushing the price below. The deeper the negative value, the more intense the selling pressure or downward momentum is.
Highlighted Crypto News
6% Slide and SUI in Retreat: Is a Bullish Counterattack Coming?