Solana’s current technical structure and key support levels will determine its next large price movement. As one of the top Layer 1 blockchains, Solana (SOL) has been known for its fast processing speeds and a growing DeFi network.
Right now, however, SOL is in a correction period after going through multiple months of selling pressure. At press time, the coin is trading at $82.10 with an increase of 2,14 % over the past 24 hours.
$111 Flips Into Major Resistance
According to the data from TradingView SOL is Currently trading near $83, Solana has been unable to reclaim the $111 horizontal price level. With lower highs and lower lows formed continuously thus far, the trend is confirmed.
The 50-Day Moving Average (MA) is declining and approaching the level of approximately $114 while staying far below its 200-Day MA of $161. This suggests a significantly weaker long-term structure.
The momentum indicators show that buyers are not exerting much strength to the upside. The most recent period of recovery displayed by the MACD is below the zero line, suggesting buyers have not redeveloped enough strength yet for bidding to continue.
A breakdown below $74.11 will trigger increased selling, targeting $50.18, which has been a defined point of interest during periods of consolidation for SOL.
Also Read: Solana (SOL) Accumulation Rises Despite Shorts and Social Activity Decline
Analyst’s Key Support and Resistance Levels
Recently, a crypto analyst checked in on SOL. He has identified $74.11 and $50.18 as providing both critical resistance and support levels, of which, if protected, will allow SOL to stabilize; if not protected, will lead to continued selling within the market.
In conclusion, Solana has some technical weaknesses beneath the $111 area of resistance. Between the $74 area, reactions will be determined. Should buyers resume control at this area, the broader bearish trend is likely to extend down to the $50 area.
Also Read: Solana Futures Flip Bearish as Revenue Hits 4-Month Low