Solana has seen some struggle in the last 24 hours, posting a 7% decline, currently trading at $145. However, one thing to note is that this drop is far from being exclusive to Solana, as nearly all top 100 cryptocurrencies (except one) have experienced dropoffs on this date.
The asset is now hovering near $145, a price level that has historically been significant for Solana. This zone has often acted as a turning point, where periods of accumulation have led to extended bullish or bearish runs. However, now that SOL has returned to this level after a downtrend, traders are watching closely to see whether it holds as support or flips into resistance.
How We Got Here
Solana’s last major rally began in early April, when the asset surged over 90% from its lows. Between April 22 and May 7, SOL consolidated in the $145-$150 range, trading mostly sideways before breaking out again. That move sent it soaring 24% higher, reaching $186 at its peak.
However, the rally lost steam on May 23, and since then, Solana has steadily declined, losing roughly 20% since that date. Now, we’re back at the $145 crossroads. Now that it is back at the critical $145 zone, $SOL could be poised for extreme volatility.
RSI Close to ‘Oversold’ Levels
Whether Solana’s trend will officially revert to bearish or price is simply accumulating liquidity to continue upward is certainly a good question to ask. The Relative Strength Index (RSI), a widely used tool for assessing trend resilience, shows the growth in selling pressure over the last few days.
Since hitting the $145 resistance, RSI displays a slight rejection by buyers, arguing that the price is entering ‘oversold’ levels. Whether that’ll hold or not is uncertain.
MACD Bearish Cross Widens
Meanwhile, MACD (Moving Average Convergence Divergence) shows us that bearish momentum is strengthening.
The MACD line crossed below the signal line on May 17, and the gap between the two is widening, reinforcing bearish momentum.
Trading volume has dropped significantly over the last couple of days, indicating that market participation is waning. This could also mean that the downtrend is losing momentum, but for that to confirm, we would need to see a strong breakout above the $145 line.
Final Takeaway: What’s Next for Solana?
Bearish Scenario
If Solana fails to hold above $145, price could find temporary support in the $141-$139 range. This zone has historically provided a base for short-term consolidation, but further weakness could open the door to deeper downside.
Key signals to watch:
- Volume: Continued decline would confirm fading buyer interest.
- RSI: If selling pressure continues without signs of stabilization, and RSI continues to range below the 50 mark, it could mean more downward movement.
- MACD: A widening bearish cross reinforces momentum shifting lower.
Bullish Scenario
If Solana breaks decisively above $145, the asset could gain momentum, leading to a potential rally toward $149-$155. Given the historical significance of this zone, sustained buying pressure could set the stage for a larger move upwards.
Key signals to watch:
- MACD crossover reversal: A shift in momentum could reinforce bullish strength.
- Volume: Increasing buy-side activity would confirm market confidence.
- Price stability above $145: Holding this level turns resistance into support, encouraging higher moves.
Of course, strong upsides will more than likely be paired with macro events, industry developments, or unexpected catalysts that could fuel additional bullish momentum, so stay tuned to our news channel to get updated.
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